Coal India and Bharat Heavy Electricals Ltd (BHEL) on February 28 announced the signing of a joint venture agreement for the setting up of an ammonium nitrate plant as part of the planned coal-to-chemical business.
The two public sector companies would be forming a joint venture firm, in which the ownership of Coal India will be 51 percent and that of BHEL will be 49 percent, a regulatory filing stated.
The joint venture company will undertake a "coal to chemicals business by initially setting up a Coal to 2000 TPD Ammonium Nitrate Plant using BHEL’s in-house developed PFBG (Pressurized Fluidized Bed Gasification) technology", the filing added.
The JV will be registered in Odisha, and incorporated as a "private limited" company with an initial paid-up share capital of Rs 1 lakh.
BHEL and Coal India would have the right to nominate three directors each on the board of the joint venture company, the exchanges were further informed. The shares would be issued after the incorporation of the company in the ratio of equity shareholding.
The announcement was made by Coal India and BHEL following the conclusion of the market hours on February 28. In the trading session, Coal India's shares edged lower, with the scrip settling on the BSE at Rs 434.30 apiece, down 1.59 percent as against the previous day's close. BHEL, however, closed 0.76 percent higher at Rs 224.65 apiece.
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