Coal news and updates

CIL to seek shareholder nod to amend norms for SCG project

June 4: Coal India Ltd (CIL) will seek approval of its shareholders through postal ballot to amend the objects clause of its memorandum of association (MoA) for setting up surface coal gasification (SCG) project in Mahanadi Coalfields Ltd’s (MCL) Talcher area.

The board of directors of CIL, at a meeting held on May 29, 2014, approved the amendment and it will now seek shareholders’ approval for the same, the company said in a filing to the BSE.

The amendment in the objects clause of the MoA was necessitated as CIL’s existing MoA does not contain the provision of manufacturing of urea-ammonium nitrate, fertilisers and associated products, the company said.

The amended clause in the MoA will read as following:

“To produce, process, store, distribute, sell, import, export or otherwise deal in gas and other by-products arising from the coal gasification process in India and abroad and use products or by-products of gasification process to produce ammonium nitrate, fertilisers and associated products and for this purpose, to install, operate and manage all necessary plants, mines, establishments and works in India and abroad.”

Incidentally, CIL had on September 5, 2013 signed a memorandum of understanding (MoU) to form two separate joint venture companies for setting up a new coal gasification-based urea plant and ammonium nitrate chemical complex in Talcher.