Kolkata: Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India Ltd, has decided to float a special purpose vehicle with Steel Authority of India Ltd (SAIL) to develop a 2-million-tonne underground coking coal mine at a total investment of Rs500 crore.
“BCCL has initiated a dialogue with SAIL which had shown interest for floating the SPV to develop the underground mine,” BCCL chairman and managing director A K Paul told reporters here.
He said SAIL would invest Rs 300 crore while BCCL would pump in Rs200 crore for the proposed SPV, he said.
To a question, he said that the proposal would be placed in the BCCL board very soon for approval.
A detailed project report for the mine having a proven reserve of 50 million tonne was being prepared.
He said expression of interest for developing the mine would soon be invited from companies globally.
Paul said that SAIL would lift the entire production from the new mine at Moonidih. He said SAIL was already taking coking coal from BCCL at a premium and it had assured of lifting the entire quantity of coal from the new venture.
The BCCL CMD also said that the company would invest Rs 1,350 crore to produce an additional 6 million tonne of coal in the 11th plan period. BCCL currently produces 24 MT of coal.