CIL to diversify, enter fertilizer and chemicals production
05 Jun 2014
Coal India Limited (CIL) is planning to diversify into the production of coal gas, chemicals and fertilisers and has decided to amend its memorandum of association in order to enter businesses other than coal production.
The CIL board recently approved the proposal and will soon seek shareholders' approval of the proposal through a postal ballot.
The amendment will allow CIL to produce coal gas or any other bi-product for storage, distribution, sale, import and export or for their use in the production of ammonium nitrate and other fertilizers.
The amendment will also allow it to install and operate such plants in India and abroad.
CIL is likely to join as a partner in the proposed joint venture of Rashtriya Chemicals & Fertilisers and GAIL (India) for exploration of the potential for production of fertiliser using gas produced from the surface coal gas project.
GAIL had approached CIL for co-operating in the studies required and the project development for surface coal-gasification in coal-bearing states in India, including the area in and around Talcher in Odisha.
The plan is to have two separate joint ventures - one for coal gasification and gas purification with GAIL and the other for setting up downstream fertilizer-cum-ammonium nitrate unit, CIL said.
Meanwhile, consultancy firm Deloitte, appointed to study the restructuring of Coal India, has recommended a rejig of the mining behemoth and its nine subsidiaries through 'internal changes in structure, systems and roles.'
The consultancy firm also suggested the setting up of independent mega regional companies or the phased creation of independent entities with CIL acting as the holding company in the interim.
