THE coal ministry entered into a tripartite agreement with the Jharkhand government and railway ministry to form a JV for undertaking financing and implementation of identified projects on equity basis.
In a bid to augment coal production by improving the evacuation process, the coal ministry on Sunday entered into a tripartite agreement with the Jharkhand government and railway ministry to form a JV for undertaking financing and implementation of identified projects on equity basis.
Earlier, a similar tripartite agreement was formed with Odisha for development of coal evacuation infrastructure. As per official estimates, nearly 200 million tonne (mt) of coal is lying idle for want of transportation to end-use plants.
The JV will have an authorized share capital of
Rs 1,000 crore. While the ministry will hold 64%, the railways and Jharkhand government will hold 26% and 10%, respectively. The JV extends for construction of railway sidings under the Tori-Shivpur-Kathotia line, extending 93.5 km and covering 1,053 hectares. Construction work of the railway lines will be undertaken after land acquisition and forest clearances have been completed, and financial closure has been achieved.
This is one among the three critical lines that Coal India is actively pursuing. The other two are in Chhattisgarh and Odisha. The major recipients of coal would be power utilities of the North and the western grid.
Additionally, Central Coalfields, a subsidiary of CIL, started production from the greenfield Magadh Opencast Project, located in North Karanpura coalfields of CCL, Ranchi.