Coal India subsidiary to outsource drilling work

ET reported that Central Mine Planning and Design Institute Ltd, the only agency to undertake exploration of coal reserves in the country is outsourcing about 10 million meters drilling task to other companies. This move will help to speed up production of coal for power and steel sectors.

A coal ministry official said that the subsidiary of Coal India Ltd has been asked to step up its exploration and drilling activities to meet future demands of coal.

A senior official in the coal ministry said that "The India government is taking measures to strengthen CMPDIL. It will double its in house drilling capacity to 4 million meters per annum and outsource most of the task to public and private sector companies."

Since June the company has already outsourced 3.87 million meters drilling task for detailed exploration of eight blocks. The blocks will either be developed by CIL or the ministry will allot them as captive blocks.

Mr B Dayal GM of CMPDIL said that "Mineral Exploration Corp Ltd, a public sector undertaking under ministry of mines is one of the major vendors, while rest has been tendered to various private players including Maitrey group and Mining Associate."

He said that the company is in the process of finalizing another deal for outsourcing 6.5 million meters drilling with private players. It is likely that the exploration would be carried out in another 3 to 4 years.

Meanwhile the company is likely to invest INR 1500 crore in replacing the old drilling machines and bringing new technology to enhance its drilling capacity.

Moreover, the company would have to work on resource evaluation and documentation for investment and exploitation decisions as more coal mines develop and begin production in Eleventh Plan Period. India Government has also asked CMPDI to increase its mapping capacities to match the spiraling demand for raw materials. Besides, the company would also have to recruit more qualified, trained and experienced professionals for its exploration activities.

In the Eleventh Plan period the PSU plans to carry out 23.44 mullion metres of drilling in the through in house drills as well as outsourcing services on the back of soaring domestic demand of coal.