Godawari Power revives Joint Venture Company for development of Captive Coal Blocks

With reference to the earlier announcement dated June 07, 2006 whereby the Company had intimated regarding termination of Joint Venture Agreement and decision for winding up of Joint Venture Company i.e., Chhattisgarh Captive Coal Mining Ltd (CCCML) which was incorporated as a special purpose company for development and operation of coal blocks, allocated to the Company in Consortium with other companies, by the Ministry of Coal, Government of India. The differences amongst the consortium partners have since been resolved with the approval of Ministry of Coal, Govt. of India, for revision in quantities of coal allocated to the consortium partners, Godawari Power & Ispat Ltd has announced that subsequent to the termination of joint venture agreement, a meeting of joint venture partners was held wherein a proposal for revival of the said Joint Venture Company and development of coal block was considered with certain modifications in the allocated quantities of the coal to each of the consortium members and accordingly a proposal was submitted to the Ministry of Coal, Government of India for their approval for revision in quantities allocated to each of the consortium members of the coal blocks.

The Ministry of Coal, Government of India, vide their letter dated May 31, 2007, taking into account the existing capacities and proposed manufacturing capacities of end use projects of each of the consortium members, has accepted the proposal of the Joint Venture Company and revised the quantities of coal allocated to each of the consortium members as per the request of the consortium members.

Further the Company has informed that, though as per the revision in allocated quantities of coal, quantity of coal allocated the Company has been reduced from 88 Million Tones to 63 Million Tones, the quantities now allocated shall be sufficient enough to meet the Company's requirements of the coal for next 30 years for existing manufacturing capacities of sponge iron and power generation.

With the approval of Ministry of Coal for revision in allocation of coal quantities amongst the consortium partners, the way for development of coal blocks allocated to the Company has been cleared and now the joint venture Company would be able start the work for development of allocated coal blocks.

Source : Equity Bulls

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