CIL to invite bids for Mozambique blocks

Maharatna PSU Coal India (CIL) will float again a global tender for exploration of its two blocks in Mozambique by the month-end as earlier bid proposal had some shortcomings, a company source said today.

"The global tender would be again out for advertisement, including in the national dailies, by the month-end," the source said. The source, however, did not comment on the shortcomings in the earlier tender document.

Coal India, in February, had said that it would float bids to hire an agency for exploratory drilling of its two coal blocks having estimated reserves of about 1 billion tonne in Mozambique.

The exploratory drilling of the twin blocks was likely to begin in May while the production was set to begin by 2015.

The coal major has already handed over the programme for drilling to the Mozambique government in January.

The mining plan of both the blocks will be drawn in 2013 and production from these blocks will begin in late 2014 or early 2015.

CIL had won the two blocks in August 2009 through a global tender floated by the government of Mozambique.

Earlier Coal Minister Sriprakash Jaiswal had said that India was seeking infrastructural support from the Mozambique government to make the two blocks operational and the African nation, in turn, had assured India of full cooperation.

CIL, which accounts for over 80% of the domestic production, is scouting for coal properties abroad to bridge the widening demand-supply gap.