CIL signs Rs 590 cr MoU with P&H

Coal India Ltd has signed a Rs 590-core deal with the United States-based mining equipment maker P&H, for buying two 42 cubic metres shovels and for its maintenance for 17 years.

To boost further competition in procurement of heavy mining equipments and to reduce its prices, the company has also changed the terms and conditions for obtaining those materials.

“CIL has changed the terms and conditions bring competition in the procurement of heavy mining equipments. Hence, the good thing about this contracte is that we were able to procure the two shovels at a price which is 7 per cent lower than a similar deal happened with another company three years before,” said Partha Bhattacharyya, Chairman of CIL.

The Kolkata-based firm had earlier followed rules in which penalties could surpass the contract value, which has been changed now.

“The deal with P&H includes a 17-year maintenace contract for Rs 390 crore,” Bhattacharyya said. The shovels would be used to at Gevra and Dipka mines of the South-eastern Coalfields.

“To increase productivity and to reduce, we should deploy such heavy mining equipments,” he added.

Meanwhile, for the current financial year, Coal India has already placed orders worth Rs 1,500 crore, which includes 16 dumpers and 22 dosers also.