As Coal India Ltd aims big, equipment makers sniff opportunities

As Coal India Ltd (CIL) prepares to double its production capabilities on a priority basis, equipment makers, both domestic and global, are sniffing big opportunities including possible joint ventures with Coal India.

Equipment suppliers like BEML, Heavy Engineering Corp, L&T and global players like Caterpillar, Joy Global, Komatsu, Atlas Copco, Leibherr and Peabody have shown interest.

In a bid to reach a production capacity of 1 billion tonne of production of CIL by 2020 from the present 500 million tonne, the coal ministry in consultation with CIL and its arm CMPDIL has finalised the roadmap which calls for significant investments in heavy mining and earth moving equipment, IT systems and a host of allied infrastructure facilities that would require billions of rupees, sources said.

What's more, in keeping with 'Make In India' mantra, CIL wants indigenous production of equipment and spares so that they are supplied in time using latest available technologies and processes so that they don't become obsolete during the lifespan of these costly equipment.

CIL's top management, in a recent meeting with prospective vendors, outlined the projected requirement of major heavy earth moving machinery for opencast mines and equipment for underground mines for the next five years with chairman cum managing director of its consultancy arm CMPDIL emphasising the need for planning for large capacity open-cast mines with matching infrastructural support and introduction of higher size equipment.

While global energy major Peabody, which operates 27 mines across the US and Australia including 20 surface mines and 7 underground mines, indicated their willingness to have association with CIL for development, Heavy Engineering Corp, based out of Ranchi, indicated plans to form joint venture with BEML and foreign partners to start joint manufacturing of rope shovels, dozers, loaders, hydraulic excavators and continuous miners.

Domestic vendors like L&T and foreign players like Caterpillar have demanded that CIL should change its tendering processes and norms and include elements like incorporation of latest technologies, upgrading of equipment at the time of replacement of equipment and adoption of international standards for testing.

Towards strengthening exploration, CIL told these companies that it plans use of more hydrostatic drill rigs, adopt 3D seismic surveys with high resolution and advance software tools for geological modeling, high capacity earth moving equipment for overburden removal and coal extraction, in-pit crushing technology, deployment of surface miners, extensive use of high capacity graders and dozers for proper maintenance of haul roads.

Adoption of different types of conveyers for transportation of coal from pit to surface and installation of more number of coal handling plants with large capacity silos for faster loading of coal into the wagons are also planned.

All of these are music to ears of all global and domestic equipment makers which would benefit as CIL looks to raise production and little investment in equipment and technology.