DNA India reported that Shriram EPC, Hindustan Dorr-Oliver, Monnet Ispat & Energy and Spectrum Coal and Power are among the bidders for state owned Coal India’s proposed 10 million tonne per annum coal washery project at Hingula in Odisha.

According to CIL officials, in April, CIL’s mining subsidiary Mahanadi Coalfields issued a request for proposal for competitive bidding for the washery.

Initial discussions with prospective bidders are over. The final bidding process for the built-operate-maintain project is likely to start soon, an official said.

Among the bidders, Shriram and Hindustan Dorr-Oliver are construction companies, while Hyderabad based Spectrum Coal focuses exclusively on setting up coal washeries.

MCL’s RFQ document states that it will “provide the capital funding for setting up the washery and other infrastructural facilities like land, water, power, etc.”

The Hingula washery is scheduled to get commissioned within 18 months from the date of awarding the contract.

While the estimated life of the washeries has been fixed at 30 years, successful bidders have to operate and maintain a plant for a period of ten years.

The Hingula project won’t face any delay on account of land acquisition MCL is already in possession of the plot, located about 8 km away from the mine area.

CIL has plans to invest about INR 3,500 crore in about 20 washeries, up from INR 2,500 crore budgeted earlier (project delays have inflated costs). The private sector sees setting up of washeries for CIL as a lucrative business. For, most of the risks would be borne by CIL.

Initially, washed coal from washeries, thanks to their low ash content and high calorific value, will likely have a higher price tag, and would be sold to power, steel and cement companies. Later, it will be sold to other non core categories of customers. This strategy could lead to much higher profitability for CIL in the coming days.

Source - DNA India

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