Solar Explosives forms JV with Chhattisgarh govt for mining
BS Reporter / Mumbai Aug 25, 2008, 13:06 IST
Solar Explosives, one of the largest manufacturers of explosives and explosive accessories in the country, has been selected by the Chhattisgarh Mineral Development Corporation (CMDC) as partner for formation of joint venture company for development, mining and marketing of coal with an estimated reserve of 80 million tonnes, from Shankarpur (Chhattisgarh).
Under the said arrangement, the company will form a JV with CMDC to explore, develop and operate approximately 80 million tonnes of coal deposits from the coal block of CMDC in Surguja district of Chhattisgarh and the coal produce will be sold commercially to the various consumers in the open market. The tender is in consortium with SMS Infrastructure, the lead partner, who is a reputed and experienced player in underground mining operation as also CMDC, between the three will control 100 per cent of the equity capital.
The JV will pay to CMDC an amount equivalent to agreed percentage of royalty of grade “D” coal payable to government as a consideration amount (service fees) for every MT of coal sold/dispatched by the JV or part of profits, whichever is higher.
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