Signing of MoU between Coal India Limited and Shipping Corporation of India
Dec 20, 2010
In order to bridge the increasing gap between availability from domestic production of CIL and quantity committed through Fuel Supply Agreements and Letter of Assurance already issued, which is likely to touch 250 million tonnes by the end of XII Plan, CIL is planning import of coal for supply to its consumers. CIL is also in an advanced stage in finalizing long-term off-take contracts with overseas mining companies, apart from acquisition of mining properties abroad.
Currently imported coal is supplied by both private and PSU players at consuming ends, particularly to power stations, with comprehensive quality and quantity assurance, whereas, in case of indigenous coal, CIL’s term of sale is Free on Rail at Colliery. In order to create comprehensive end-to-end logistic solution from load port to consuming end, CIL signs a Memorandum of Understanding with The Shipping Corporation of India Limited on date for promoting a Joint Venture Company (JVC).
Primary objective of the JVC would be
- Owning/chartering of vessels
- Draft surveying
- Inspection of cargo
- Stevedoring at unloading port in India including unloading of vessels, customs clearance, shore clearance, and stacking
- Indenting wagons from railways, loading of wagons, quality analysis and delivery of coal at power stations
In order to address the issue of emerging mismatch of logistics capacity of Indian Railway system, the JVC shall endeavour for creating additional transport capacity including development of alternative/additional sea/river routes for coastal shipment and acquiring requisite assets and hardware.
The JVC will also explore the possibility of developing port/bulk terminal including arrangement for transshipment in midsea at Bay of Bengal for extensive use of Haldia Port and the National Waterways-1 (River Hooghly) for delivery of imported coal to the power stations on the river bank, including those of NTPC, WBPDCL and CESC.