New Delhi: State-run Power Finance Corp today said it has tied-up with Rites Ltd to import coal from countries, including Africa, to ease scarcity of the fuel in view of rising demand by electricity generators.

The two companies have signed a Memorandum of Understanding (MoU), which provides for formation of 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.

The MoU seeks to leverage the expertise of PFC and Rites in their respective fields. 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.

"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," it said.

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

PFC, a prime lending institution to the power sector, also provides consultation services for setting up projects.
Source : PTI