 "South Africa's Limpopo govt may allow changes in CIL pact")
New Delhi: A northern province in South Africa, Limpopo, is considering Coal India’s request for amending certain clauses in the pact they had signed on acquiring mines there.
“CIL has got some response from the government of Limpopo that the South African nation was considering the request of the coal PSU for some changes in the Memorandum of Agreement,” a source close to the development said.[caption id=“attachment_425131” align=“alignleft” width=“380”]  Different pact. Reuters[/caption]
Coal India (CIL) has initiated the process of forming a subsidiary in South Africa and has invited consultants to assist in its formation, taking ahead its plans of acquiring coal mines overseas amid the country facing huge demand supply gap of fossil fuel.
“CIL had earlier conveyed to the government of Limpopo that it would not take decision immediately with regard to setting up of infrastructure in the African nation and had requested the Limpopo government for changes in the clauses of the agreement with regard to it,” the source added.
Earlier, CIL had signed pact with the Limpopo province of South Africa, for jointly identifying, exploring and developing coal mines.
Last year, the government of Limpopo had approached CIL for a joint venture (JV).
The PSU has set aside Rs 6,000 crore for acquisition of mines overseas.
CIL, which accounts for more than 80 percent of the domestic coal production, missed its revised 2011-12 production target. It achieved only 435.84 million tonnes (MT), as against the targeted 447 MT. The demand-supply gap of the fossil fuel was 161.5 MT last fiscal.
As CIL is in the process of signing fuel supply agreements, assuring minimum of 80 percent requirement of power consumers, it wants to improve coal availability both by increasing domestic production and also through overseas sources.
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