Singareni Collieries Co proposes to tie up with Damodar Valley Corporation and APGenco in order to increase mining output.
It is learnt that Singareni has limited scope to raise capacities as it has not been getting adequate blocks. Therefore it is planning to work with other companies in the sector on coal-sharing basis.
It may be recalled that the firm entered into joint venture deals with NTPC and Minerals and Metals Trading Corporation to take up mining projects in their allotted coal blocks in Chhattisgarh and Jharkhand respectively.
While the joint venture with NTPC involves an 18-million-tonne project across coal blocks in Chattisgarh, the venture with MMTC will involve tapping its mine in Jharkhand, estimated to have reserves of 287 mn t. Both these tie-ups are based on a revenue-sharing model.
The company plans to adopt resource-sharing model even with its proposed joint venture projects with Damodar Valley and APGenco.
DVC, which is adding 2000 mw capacity, is planning to turn its mining assets with four blocks into a separate business unit, which will enter into the joint venture with Singareni.
Media reports suggest that Singareni's talks with DVC are in the early stages and the firm hopes a positive outcome soon.
By 2015-16, Singareni plans to expand capacity to 57 mn t. In 2012-13, it expects to raise output by 2.5 per cent to about 54 mn t.