CIL signs MOU with NTPC for setting up new coal mining projects

New Delhi, May 13 (UNI) The public sector coal major, Coal India Ltd (CIL) has signed a Memorandum of Understanding (MoU) with National Thermal Power Corporation (NTPC) for jointly undertaking the development, operation and maintenance of coal blocks and integrated coal based power plants.

According to official sources the MoU includes, joint business development group consisting of four members each from CIL and NTPC who will identify suitable projects and submit feasibility report to the steering committee consisting of two functional director from each of CIL and NTPC.

This committee will send the feasibility report, if considered viable, to the Apex Committee which comprises of CEOs of CIL and NTPC. Apex committee will consider and approve the report.

For the implementation of the project, a JV will be prepared and a project specific JV ccompany will be formed after approval for investment and pattern of funding in the venture, by the Board of Directors of CIL and NTPC.

Once the new company is formed, the terms of this MoU will cease to apply to that specific JV company.

The MoU also covers the points of incorporation and registration of JVs, its financing, the Board/ Management of JVs, incurrence of expenditure by the parties (CIL and NTPC), confidentiality clause, purchase of excess coal/ power limitation of liability, effective date and validity, settlement of disputes and arbitration, entire understanding, governing laws and jurisdiction, assignment of rights and obligations and notice clause.

Meanwhile, the Damodar Valley Corporation (DVC) has submitted a draft MoU proposal for joint development of an underground mining and material handling equipment and machinery manufacturing facility in and around Durgapur with CIL for revival of M/s MAMC.

The proposal of revival of M/s MAMC is in conceptual stages.

Detailed action plan will be drawn after MOU with M/s DVC and other interested parties is signed, the sources added.

UNI