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India : COAL INDIA to buy 50% in explosives business of IOC
Publish Date : 09-Feb-2016
Coal India Ltd. (CIL) is to purchase a 50 per cent stake in the explosives business of Indian Oil Corporation (IOC) to make sure steady supply of quality explosives used to extract coal from open-cast mines.
A Memorandum of Understanding (MoU) has been inked by the two public sector firms. Under the MoU, 12 explosive making units of IOC will have joint ownership with CIL.
An official in CIL said: A joint venture company will be floated and is likely to start production from March 2017.
Six of IOCs explosives units are situated at CILs subsidiary units, excluding Western Coalfields. Eight of these units completely fulfil the demand of CIL.
However, the total procurement is just a fourth of CILs needs. According to a company official, 20-22 other suppliers provide the remaining of explosives to CIL.
