Home ECONOMY Odisha-Centre MoU on SPV for coal transport on Monday

Odisha-Centre MoU on SPV for coal transport on Monday

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Odisha Sun Times Bureau
Bhubaneswar, Apr 18:

In the first of its kind special purpose vehicle (SPV) in the country, the Odisha government will tie up with the Ministry of Coal and the Railways ministry on April 20 for evacuation of coal.

Pic courtesy: thehindubusinessline.com
Pic courtesy: thehindubusinessline.com

“It will be the first of its kind SPV in the country. Odisha government will sign a memorandum of understanding (MoU) with Coal and Railways ministries on April 20 for the SPV.  The SPV will be formed to evacuate coal.Under this SPV, project specific SPVs can be formed where private partners can have equity participation,” informed Sanjay Rastogi, secretary, commerce & transport department on Friday.

While the state government will have 10 per cent equity, the Ministry of Coal or its PSU, Mahanadi Coalfields Ltd (MCL), a Coal India subsidiary, will have 64 per cent equity and the Railways ministry through any of its PSUs- Rail Vikas Nigam Ltd (RVNL) or IRCON will hold 26 per cent share.

Evacuation of coal has assumed significance as Coal India and its subsidiaries plan to increase production.

Stockpiling of coal at pitheads has been a pressing problem for both the Centre and the state government. The SPVs have been planned for evacuating coal.

It may be recalled that Coal secretary Anil Swaroop had announced in February this year formation of two SPVs to facilitate speedy evacuation of coal from Talcher and Ib valley coalfields in the state.