CIL’s maiden coal gasification project progresses; BCGCL to hold pre-bid meet on July 1

New Delhi: Coal India’s maiden coal gasification project is progressing well with Bharat Coal Gasification and Chemicals Limited (BCGCL) set to hold the first pre-bid meeting with potential bidders on July 1, weeks after floating the three big tenders for the project. “The first pre-bid meeting is scheduled to take place in Noida on July 1,” BCGCL Managing Director (MD) Dr Peeyush Kumar told PSU Watch on Thursday. State-run Projects & Development India Ltd (PDIL) has been appointed as the Project Management Consultant (PMC) for BCGCL’s pre-project and pre-award activities, PSU Watch has learnt. So far, tenders for all three major LSTK (Lump sum Turnkey) packages have been floated by BCGCL for the finalisation of the Detailed Feasibility Report (DFR).

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The project is being executed in partial LSTK mode. It comprises of four LSTK packages. While LSTK-1 will be done by Bharat Heavy Electricals Limited (BHEL) on nomination basis, LSTK-2, LSTK-3 and LSTK-4 are being executed through the tendering route. The tender for LSTK-2 was floated by BCGCL on May 30, while tenders for LSTK-3 and LSTK-4 were issued on June 14.

The plant is India’s and Coal India Limited’s (CIL) maiden commercial coal gasification project. It will be the first to deploy an indigenously-developed coal gasification technology devised by BHEL on a commercial scale.

BCGCL

The coal gasification project is being implemented through BCGCL, a Joint Venture of CIL and BHEL formed on May 28 this year. BCGCL held its first Board meeting on June 11, during which Debasish Nanda, Director (Business Development) at Coal India, was appointed Chairman, Dr Kumar was appointed MD, Jai Prakash Srivastava, Director (E, R&D) at BHEL, was appointed Vice-Chairman, and Swapan Kumar Bhattacharya, GM (Corporate Finance) at BHEL, was appointed Director (Finance). The plant will come up in Lakhanpur area of Mahanadi Coalfields Limited (MCL) in Odisha.

The BCGCL MD, Dr Kumar, recently had an introductory meeting with Kalyan Mohanty, Executive Director, Industrial Promotion & Investment Corporation (IPICOL) of Odisha, in connection with the application under single-window clearence portal of the government of Odisha for the coal gasification project of BCGCL.

CIL’s coal gasification projects

Including BCGCL’s coal gasification project, Coal India has taken up three surface coal gasification projects in MCL, Eastern Coalfields Limited (ECL) and Western Coalfields Limited (WCL) command area. The project coming up at ECL is being executed through a JV of CIL and GAIL (India) Limited, while the one at WCL is funded by Coal India itself. For the ECL coal gasification project, PDIL has been appointed as PMC and stakeholder consultations have been completed for the shortlisting of coal gasification licensor. At WCL, cost updation of Project Feasibility Report (PFR) is under preparation by PDIL and an investment decision will be taken after the finalisation of PFR.

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