Coal India firms up on inviting EOI for appointment of consultant in South Africa

Coal India is currently trading at Rs 350.05, up by 4.60 points or 1.33% from its previous closing of Rs 345.45 on the BSE.

The scrip opened at Rs 345.50 and has touched a high and low of Rs 352.50 and Rs 345.00 respectively. So far 29372 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 403.85 on 18-Aug-2011 and a 52 week low of Rs 293.75 on 22-Dec-2011.

Last one week high and low of the scrip stood at Rs 352.50 and Rs 335.05 respectively. The current market cap of the company is Rs 218198.81 crore.

The promoters holding in the company stood at 90.00% while Institutions and Non-Institutions held 7.28% and 2.72% respectively.

State owned Coal India (CIL) has invited expression of interest (EOI) for appointing consultants to assist the company’s venture of formation of a wholly-owned subsidiary company in South Africa, as mentioned in a media report. The expression of interest, which opened on August 8, 2012 will close on August 29, 2012.

In a bid to address its acute fuel shortage problem, the company is planning to set up a wholly owned subsidiary in South Africa which could do the job of mines acquisition.  Further towards the development, the company has already inked pact with the government of Limpopo, South Africa, for jointly identifying, exploring and developing coal mines. This move of the company is reciprocation to South African government request of forming a joint venture with one of its public sector firms for acquiring coal mines there.

Recently, clearing the way for signing of fresh fuel supply pacts with power producers, CIL agreed to pay penalties of up to 40% on failing to supply at least half of the contracted quantity to power producers under the fuel supply agreements (FSAs). As per decided norms, if the supply of the company is between 50% and 60% of the assured quantity, then a penalty of 10-20% would be levied. In case the supply is between 60% and 65% of the contract, CIL would attract a penalty of 5%. While that between 65% and 80% of the contracted quantity then the rate of penalty would be 1.5% of the value of the shortfall.