Binani Cement considering Datima Coal Block
Binani Cement Ltd has been in the process of conducting due diligence of the Coal Block before investing Rs.5.2crore. Vinod Juneja, MD of Braj Binani Group said: “While we are yet to receive the formal notification revoking our application for allotment of Datima Coal Block. We had already communicated seeking time from the ministry as we are in the process of assessing the feasibility and viability of the coal block which is likely to be completed by the end of the year.”
Based on the findings of the geological experts deputed by Binani Cement, it will take a final decision whether to acquire the block or not. Binani is concerned about the environment and being an environment friendly company the company looks to minimize any damage to the environment by using Coal with low ash content, if the block contains coal with high ash content, the company may not go for acquiring it.
Presently Binani coal imports are valued at about Rs 500 crore per annum. "We import large quantities of Coal from countries like Indonesia to meet the requirements of our captive power requirements; the Coal imported is low in ash content as compared to Indian Coal which is very high in ash content thus damaging the environment," Juneja said.
One of the critical evaluation that Binani looking at in the current Coal Block allocated by the Government, is the infrastructure which is a critical aspect of logistics in bringing coal from the coal mines to Binani Plant. If the Government is able to build a strong infrastructural developments of railways and roadway, the company is looking to invest Rs.5.2 crore in the coal blocks.