Bccl In Talks For Sales Against Advance Payments

BCCL chairman & managing director A K Gulati told Business Standard that lack of funds is preventing the company from taking up new projects.

The firm has, thus, decided to opt for advance payments from power utilities under the agreement that they will have linkage of coal supplies from the new mines set up with funds collected from them.

Gulati said around 70 per cent of the cost of its new projects is being sought from the power companies with a long-tern assurance on supplies of coal.

BCCLs proposal is being seriously considered by Punjab State Electricity Board (PSEB), Damodar Valley Corporation and Gouripore Power Company.

 

The single unit Gouripore project, a joint venture launched by West Bengal State Electricity Board (WBSEB), Eco Tek Corporation and Birla Technical Services, has a capacity of 150 mw and a fluid-based boiler.

BCCL is currently trying to finalise three projects at Jharia - the Salunga project on its eastern side and two opencast expansion projects at the Salanpur and Muraidih mines on its west.

PSEB has already decided to send teams to the site at Salunga for which DVC has also shown interest. BCCL itself will take up the new project at Block III on the western side of Jharia for the mining of coking coal.

Each project will cost Rs 30 to 40 crore, Gulati said.

The Salunga project is estimated to have 6 million tonnes of mineable coking coal out of a total reserve of 10 million tonnes.

An annual extraction of 0.6 million tonnes will, thus, give the project a life of 20 years. Coking coal at Salunga is of the Washery IV type - equivalent to grade C non-coking coal. The two opencast projects at Salanpur and Muraidih will involve the mining of non-coking coal.

In 1995-96 BCCL achieved coal production of 27.8 million tonnes against a target of 28.75 million tonnes. The shortfall is attributed to heavy rain and the major mining accident at Gaslitand.

Gulati is, however, confident of achieving the targets of 29.5 million tonnes in the current financial year year and 30.72 million tonnes in 1997-98.