Coal India, which is striving hard to finalise a public private partnership (PPP) model in mining operations, failed to secure the board’s nod but remained hopeful of issuing tender by the end of the current fiscal.
“It has not been cleared by the board yet. We have discussed and are working on the model. If there are some suggestions, we will incorporate it,” Coal India Chairman and Managing Director S Narsing Rao said in Kolkata on Friday after the board meeting.
“We are working on the model... we expect to clear the model and come out with the tender by March end,” he said.
According to a company source, “In today’s board meeting there were discussions on the document for the model. However, some of the board members raised objections to some of the clauses of the document and as a result it could not be finalised today.”
Union Finance minister P Chidambaram in his 2013-14 Budget speech had pressed for a PPP model for mining operations in Coal India Limited (CIL) to boost production and bridge the demand supply gap in coal.
CIL currently follows the MDO (Mine Developers and Operators) method in mining and has already engaged private players on contract basis in a limited way.
“It will be a turnkey based long term contract of at least 15 years where all responsibilities of mining will rest with the private party,” Mr. Rao said explaining the broader aspects of the new model.
However, environment clearance responsibilities would remain with the CIL.
Mr. Rao added there had been some interest from foreign miners as well in the project.