Coal clouds over RIL’s JV plan with CIL
Coal shortage may cast shadows over a proposed Reliance Industries-Coal India venture.
By Debjoy Sengupta, TNN |
KOLKATA: Coal India (CIL) was approached by RIL for a coal-to-oil venture, and the CIL board plans to discuss the issue at its next board meeting.
���RIL intends to sign an MoU for working together in a coal-to-oil deal so that a JV can be struck in future. However, we are not sure since it is a new technology requiring vast quantities of coal. Such a project will require 20 million tonnes of coal every year, supplying which will turn out to be a daunting task for CIL,��� said a CIL official.
When contacted, a Reliance spokesperson, however, declined to comment on the issue.
���Currently, our entire coal production for the year is tied up through linkages and we need to supply that on a priority basis. We cannot supply the requisite 20 million tonnes for a coal-to-oil venture from our existing mines unless some existing clients withdraw their linkage and the coal becomes available for supply to other projects ��� like this one,��� he said.
���RIL intends to sign an MoU for working together in a coal-to-oil deal so that a JV can be struck in future. However, we are not sure since it is a new technology requiring vast quantities of coal. Such a project will require 20 million tonnes of coal every year, supplying which will turn out to be a daunting task for CIL,��� said a CIL official.
When contacted, a Reliance spokesperson, however, declined to comment on the issue.
���Currently, our entire coal production for the year is tied up through linkages and we need to supply that on a priority basis. We cannot supply the requisite 20 million tonnes for a coal-to-oil venture from our existing mines unless some existing clients withdraw their linkage and the coal becomes available for supply to other projects ��� like this one,��� he said.
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