CIL to award contract for its mining project

New Delhi: State-run Coal India has decided to award the turnkey contract for its Rs 2,500-crore project to develop seven underground coal mines with an estimated reserve of over 400 million tonnes by the end of this year.

Currently, CIL is holding meetings with the short-listed companies and in most likelihood would award the contract by end of the calendar year

In all, 17 companies had in June last year submitted expressions of interest for developing the seven underground mines of CIL.

The nine companies that have been short-listed for the project include Reliance Infrastructure, Walter South East Asia, Anglo American, Essel Mining and Essar Mineral Resources.

Also, CIL has decided to relax some of its notice inviting tender (NIT) norms for the companies to ensure their good participation in the final tendering process. Making changes in the earlier clause of seeking a bank guarantee for 15 years, CIL has decided to ask for an annual guarantee, which would reduce the upfront fees of contractors. The guarantee would be renewed annually.