In a bid to help SAIL (Steel Authority Of India Ltd) reduce its heavy dependence on coking coal imports, the Steel Ministry has sought the Coal Ministry's intervention in expediting the proposed strategic partnership between the state-run PSU and BCCL for developing the Kapuria coal block in Jharkhand.
"In order to enable SAIL to reduce its dependence on costly imports, we will be grateful for your intervention for ensuring that the proposed strategic partnership between SAIL and CIL/BCCL for the development of Kapuria block takes off at the earliest," the Steel Ministry said in a letter to the Coal Ministry.
Over the years, coking coal availability to Steel Authority of India Ltd (SAIL) from Coal India Ltd (CIL) has gradually declined to around four million tons per annum, forcing the country's largest steel producer to import over 70 per cent of its requirement. When contacted, CIL Chairman Partha S Bhattacharya said developing the Kapuria coal block will need foreign expertise, for which the company has floated an expression of interest, inviting potential companies. "Once we get an overview of the cost of mining and specific availability and grades of coal, we will proceed for a joint venture with SAIL. An in-principle decision for the said venture has already been taken," Bhattacharya told PTI. The CIL Chairman added that "even if there was no alliance with SAIL for developing Kapuria, the entire coal reserve mined from the block will go to the PSU (SAIL), as BCCL has a long-term agreement for the same."
Source: Economic Times
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