CIL, SCI on lookout for consultant to study proposed JV

Coal India and Shipping Corporation of India are in the process of appointing a consultant to carry out feasibility studies and finalise other modalities of the two state-run PSUs' proposed joint venture for the import of 25 million tonnes of coal per annum.

The companies had floated a tender soliciting consultancy services on February 4. As per the scope of work, the consultant will be required to carry out a feasibility study, facilitate the process of incorporation of the joint venture company (JVC) and prepare the joint venture agreement, besides other responsibilities, a source told PTI.

"Tender has been floated for appointment of a consultant to facilitate the formation of the joint venture company (JVC) being promoted by Coal India (CIL) and Shipping Corporation of India (SCI)," the source added.

As part of the feasibility study, the consultant will be required to carry out technical, operational and financial diligence on the proposed new venture, as well analyse the core competences of the promoters (SCI and CIL), he said.

The consultant will also be entrusted the task of drawing up a business plan and organisational development plan for the JV, involving the preparation of various relevant financial statements, making recommendations with regard to selection of JV partners or business associates and making suggestions on the preferred location for the proposed JVC, among other things, he added.

The last date for submission of bids against the tender is February 25.

In December last year, CIL and SCI signed a pact for a 50:50 joint venture for importing 25 million tonnes of coal per annum to meet growing demand in India.

The proposed joint venture company will be involved in the charter-hire of ships, development of logistics chains to supply imported coal directly at the doorsteps of users, setting up bulk cargo-handling terminals, mid-sea trans-shipment in the Bay of Bengal and creation of facilities for transportation of cargoes.

SCI Chairman and Managing Director S Hajara had expressed hope last month that the deal for the JV would be signed this calender year.