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India’s MOIL fails to secure coal block for diversification

8th July 2013

By: Ajoy K Das

Creamer Media Correspondent

  

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KOLKATA (miningweekly.com) – Manganese ore miner MOIL’s bid to diversify into captive and commercial coal mining has been dealt a blow after the company failed to secure coal blocks from the Indian government.

According to officials in the Coal Ministry, the government’s priority while allocating new coal blocks had been to ensure sufficient feedstock for new thermal power generating companies and, therefore, blocks had been allocated only to power companies that were investing in new capacity and that have already signed power purchase agreements with electricity distribution companies.

Over the past five years, the Indian government has allocated 14 coal blocks to power generation companies.

MOIL had applied for eight coal blocks to fuel its ferroalloy projects, in collaboration with the Steel Authority of India Limited, as well as to fuel its proposed captive power plant.

As a government majority owned and controlled company, MOIL had expected to secure a coal block through the preferential allotment route but had been excluded from the list given the government’s priority that coal supplies be used for power generation, owing to the coal shortages faced by power utilities, Ministry officials said.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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