Chhattisgarh to have 51 % share, MP 49 %
Bhopal: Madhya Pradesh and Chhattisgarh will jointly explore a new coal block in Korba, the government of India had secured the rights of micro small and medium enterprises (MSME) units and a joint venture company will have the responsibility to give at least 25 per cent of its production to these MSME.
Recently the MP state mining corporation and Chhattisgarh state mineral development corporation had signed MoU with the GoI. Both the states MP and CG have formed the joint venture, Kerwa Coal Limited Company, which will conduct coal mining in Korba district in Chhattisgarh. The company will explore 11 square kilometre area and will excavate 112.94 million ton coal.
Chhattisgarh will have the 51 per cent of share and the MP will have 49 per cent. The local management will be handled by the CG like environmental clearances and others issues.
The administrative responsibilities have also been divided, while the managing director will be from CG, and the chairperson will be from MP. The production should start within 5 years from the date of agreement signed, reads the contract.
The sale of the coal will be done online, 25 per cent for the MSME, 10 per cent on spot sale and the rest on the long term purchase agreement through bidding.
However, in any five year block, the block allocatee is required to produce at least 80 per cent of the coal as per the Mining Plan. Provided that the flexibility in coal production schedule as permitted in above clause shall be applicable only from the financial year subsequent to the financial year in which the Mine will achieve the Peak Rated Capacity.
It is clarified that in such event, the MSME Share on annual basis shall remain the same.
Geological and Archaeological Finds
It was agreed that other than rights to mine for coal (as may be granted under any Mining Lease pursuant hereto), geological or archaeological rights do not form part of the rights granted to the company.
In case any minerals (other than coal), metals (including gold, silver etc.), gas, oil, fossils fossils, antiquities, structures or other remnants or things either of particular geological or archaeological interest is found in the Coal Block area, the company shall promptly inform regarding the same to the Government authorities concerned and handle it as per the applicable law and the directions as may be provided by the Government authorities concerned.