Commodity Online

NEW DELHI: Rites Ltd will source and import coal from abroad for state run Power Finance Corporation to meet scarcity of fuel in the wake of increasing electricity consumption.

According to a Memorandum of Understanding (MoU) signed between PFC and Rites, both the companies to form one or more special purpose vehicles to acquire mining rights, outsource mining activities and import coal to India for selling.

Both the parties have agreed to combine their resources and expertise to facilitate import of coal from African countries and elsewhere to address the problem of power deficit in India, the MoU said.

As per the tie up, Rites, besides being a technical partner, would identify countries where possibility of owning coal mines exists and excavation and transportation of coal is feasible for importing coal to India.

The MoU further said that Rites being a technical arm of the Indian Railways will liaison with Railway authorities for carrying and expediting sectoral studies, development of suitable plans and ensure adequate rail network for coal movement, development of new rail links with ports connectivity.

Besides, the two partners would also jointly provide advisory services to Indian companies in acquiring mining rights overseas