Coal India to adopt turnkey model to speed up washeries development

Pratim Ranjan Bose Updated - March 12, 2018 at 11:49 AM.

A worker rides his motorcycle near lorries transporting coal before it is loaded onto a Chinese ship at a port of the Cua Ong Coal Preparation Company in Cam Pha town, in Vietnam's northeast Quang Ninh province, 200 km (124 miles) from Hanoi in this September 21, 2010 file photo. Vietnam will raise its coal export tax to 20 percent next month from 15 percent, as the country moves to save the fossil fuel for domestic consumption while coal production in August would fall from previous months, state-run newspapers reported on August 3, 2011. REUTERS/Kham/Files(VIETNAM - Tags: ENERGY BUSINESS)

In order to avoid delays in project implementation, Coal India is planning to adopt turnkey model for development of 21 washeries for beneficiation of 165 million tonnes of raw coal in the second phase. Even after nearly three years, since conception, only one of the 20 such proposed beneficiation plants — with a combined capacity to wash nearly 111 mt of coal — is under construction.

According to sources, unlike in the past, in the second phase — entailing an investment of nearly Rs 4,200 crore — CIL would decide on the technology to be used and approach the designated authorities for environmental clearances armed with specific project plan, before inviting tenders for appointment of build, operate and maintain (BOM) contractors. Similar to first phase, CIL will be funding the projects.

“We are planning to develop washeries in the second phase on turnkey-basis. Considering the huge time-lag between conception and implementation, as is evident in phase-I of the project, we have decided to plan it early. We are expecting the projects to be implemented after seven or eight years,” a senior CIL official told

Business Line .

The coal major is currently in the process of identifying the project locations; preparing the technical assessments and others for seeking preliminary board approval.

Referring to the tardy pace of phase-I project implementation worth Rs 2,100 crore, the official said that while only one washery in the Bharat Coking Coal (BCCL) area was under construction, two more projects were awaiting environmental clearance. Another 11 projects were in various phases of tendering.

“In the first phase we made the mistake of keeping the technology issue open. This led to further delay in preparing a detailed project plan and availing the environment clearance after appointment of contractors”, he added.

Wage negotiation

Meanwhile, at the first round of wage negotiation on August 20 and 21, CIL received demand charters from unions for raising salary. The largest workers lobby INTUC, however, is yet to submit its demands.

CIL hiked wages by 24 per cent on an average in the round of the five-year National Coal Wage Agreement ended on June 30.

Published on August 23, 2011 16:46