CIL, RCF, GAIL in pact for gasification project

Nava Ratna public sector company, Coal India Limited (CIL) has joined hands with Gas Authority of India (GAIL) and Rashtriya Chemicals and Fertilisers (RCF) to set up a coal gasification project at Talchar in Orissa, a top CIL official has said.

"The project is being set up at Talchar at a defunct RCF plant and Mahanadi Coalfields Ltd would be supplying five MN tonnes of coal for the project," Coal India Chairman, Partha S Bhattacharya, told a news conference, here yesterday.

"CIL had earlier contemplated underground coal gasification but was seriously concerned over water contamination unlike Russia, where coal mines are located in remote areas, whereas our mines are situated in human inhabitations," he said.

Amonium Nitrate would be extracted which will be used for producing Urea by the RCF, he said.

Bhattacharya said that the coal sector was growing at seven percent and the setting up of new coal washeries would be completed with two years.

On the IPO, he said it was scheduled to come in September and for the first time, CIL was considering giving shares to Project Affected Persons (PAPs), who have not availed other rehabilitation benefits like employment.

"They will be offered at face value," he said adding that there was proposal of setting up a trust for modalities and facilitating.

Bhattacharya said quantum of coal import has gone up from 49 million tonnes to 83 million tonnes this fiscal and by the end of 11th five year plan, it would go to 102 million.
       
"Coal supplied to state-owned power generating companies in Maharashtra (Mahagenco) and Madhya Pradesh (MPEB) was of same standard and there was deterioration of quality," Chairman cum Managing Director of CIL subsidiary, Western Coalfields Limited, D C Garg said.
       
No way it has affected the power generation, he said adding however, in rainy season, coal is sticky and it was for the purchasers to maintain a dry stock.