Coal India invites bids for 7 MTPA washery in Jharkhand

Aiming to improve the quality of its product, state-owned miner Coal India has issued an e-tender inviting domestic and international bidders to set up a 7 million tonne per annum (MTPA) capacity washery at Konar in Jharkhand.

To be operated on a build-operate-maintain model, the washery will be set up under the Central Coalfields Limited (CCL), a Coal India subsidiary.

"E-tenders are invited from reputed and experienced bidders through e-tendering on CIL (Coal India) portal for the work of setting up of 7 MTY (million tonnes per year) non-coking coal Konar washery at B&K Area of CCL on build-operate-maintain concept," Mini Ratna company CCL said on its website.

As per the request for qualification (RFQ) and proposal (RFP) document, the scope of the work for the washery under the East Bokaro coalfield area consists of planning, design and engineering of the washery inclusive of selection of necessary equipment and machinery and others.

"CCL will provide the capital funding for set-up of washery and also other infrastructural facilities like land, water, power etc," the RFQ said.

Among the criteria listed in the tender document, an average annual financial turnover of at least Rs.750 million during the last three fiscal years and working capital of Rs.500 million for the bidders have been prescribed as compulsory clauses.

Construction of the washery has to be completed within 18 months of signing the contract.

The bid documents are available to bidders from November 10 to January 1, 2016, CCL said.

During its annual general meeting held in September, Coal India listed setting up of washeries as a priority for the Maharatna company.

"Coal India plans to set up further 15 washeries having state-of-the-art and innovative technology in coal benefication with an aggregate throughput capacity of 112.6 MTPA," the company's chairman Sutirtha Bhattacharya said earlier.

Of the planned washeries, six will be for coking variety of coal and the rest nine will be for non-coking coal variant.

Presently, Coal India, the world's largest coal miner has 15 washeries -- 12 in coking and three in non-coking coal segments -- with a cumulative capacity of 36.8 MTPA.

Washeries help in improving the coal quality by reducing the ash content and hence improve consumer satisfaction.