Coal India to invest Rs 7,000 crore to procure equipment to augment production

Mining behemoth Coal India (CIL) has put the process of procuring various types and sizes of high capacity heavy earth moving machinery (HEMM) on the fast track to press these into operation in its open cast mines as soon as possible. This move would bolster CIL’s production on the back of an investment of above Rs 7,000 crores. This would be made out of the company’s Capex kitty, a CIL statement said.

“Nine global tenders built on a common NIT at CIL level through a transparent e-procurement process with reverse auction have been issued,” said an official of the company adding, “Our production is predominantly through open cast mines, and once procurement kick starts and these high capacity HEMMs are inducted, they would contribute to our production”. All the subsidiaries of CIL would reap the benefit of this purchase process, the statement said.

The long shopping list of machinery of the world’s largest coal producing company includes rear dumpers of varying capacities ranging from 150 tonne to 240 tonne, electric rope shovels of 20 cubic metres (CuM) and 42 CuM capacities, 15 CuM hydraulic face shovels, 10-12 CuM hydraulic shovels, 460 HP wheel dozers and 850 HP crawler dozers. Tendering for very high capacity draglines is also on the anvil. The total number of all types and sizes of HEMMs being procured exceeds 360.

The procurement of HEMM is based on total cost inclusive of equipment price along with installation and commissioning charges and prices of consumables for certain period beyond warranty period. The NIT has been aimed at increasing the number of proven supply sources to benefit the company by creating a competitive supply market. From January 2016 onward, CIL designed an innovative e-procurement process of automatic evaluation of bids and online submission of EMD.

CIL was conferred the Best Performer Award in 2018 in making the innovative method of “fully automated tendering process” by ministry of finance, department of expenditure along with NIC, ministry of electronics and information technology, government of India, a CIL release said.

Coal India Ltd