Coal news and updates

CIL shareholders’ voting results on MoA norms on July 18

June 5: The results of the voting by the shareholders of Coal India Limited (CIL) seeking their approval to the amendment of the objects clause in its memorandum of association (MoA) for setting up a surface coal gasification (SCG) project in Mahanadi Coalfields Ltd’s (MCL) Talcher area will be announced on July 18, 2014, the company said in a filing to the BSE.

According to a notice of the company, the postal ballots should reach the scrutiniser by July 16 while the e-voting system for the same will be opened from June 17 to July 16 (5:30 pm).

Earlier, the board of directors of CIL, at a meeting held on May 29, 2014, approved the amendment since the main object clause of the MoA of CIL does not contain any provision for setting up of a fertiliser-cum-ammonium nitrate complex.

The explanatory statement of the company said that Rashtriya Chemicals & Fertilisers Limited (RCF) had signed a memorandum of understanding (MoU) with the Gas Authority of India Limited (GAIL) for jointly exploring the potential use of the synthesis gas produced from the surface coal gas project in the fertiliser industry.

GAIL had approached CIL for cooperating in various studies required for developing surface coal gasification in coal-bearing states in India, including the area in and around Talcher. Consequently, an MoU was signed between GAIL and CIL in 2008.

The current development in Talcher is linked to the revival of the Talcher unit of the Fertiliser Corporation of India (FCIL) which was awarded a consortium of GAIL, RCF and FCIL following a decision of the meeting of the Cabinet Committee on Economic Affairs (CCEA) in 2011.

Then, it was envisaged that a new urea-ammonium nitrate project would be set up at the site of the Talcher plant of FCIL using coal gasification technologies.

Accordingly, CIL on September 5, 2013 signed an MoU with FCIL, GAIL and RCF, wherein it was agreed to form two separate joint venture companies for the project.

First was to be a coal gasification and purification company with GAIL (70% stake), FCIL (11% stake), RCF and other technology suppliers having minor stakes. The second was to be a downstream fertiliser-cum-ammonium nitrate complex where RCF and CIL would be majority stake-holders.