BCCL Ties Up With SAIL For Jharkhand Mine

Kolkata: Coal India Ltd subsidiary, Bharat Coking Coal Ltd (BCCL), has decided to set up a special purpose vehicle with Steel Authority of India Ltd (SAIL) to build a two million tonne underground coking coal mine at a total investment of Rs 500 crore. BCCL had initiated a dialogue with SAIL which had shown interest in floating the SPV to develop the underground mine. SAIL will infuse Rs 300 crore while BCCL would pump in Rs 200 crore for the proposed SPV. A detailed project report for the mine having proven reserves of 50 million tonne was being prepared. SAIL will lift the entire out put from the new mine at Moonidih. BCCL will be guarantor for the production and SAIL would chip in money into the JV project. BCCL has approached a foreign company for help in the Moonidih longwall mechanisation project.