WCL expects IPO mandate by financial year end: CMD Hemant Pande

Nagpur: Western Coalfields Limited (WCL), one of the major public sector undertakings (PSU) of the region, is expected to get mandate for an initial public offering (IPO) by the end of the financial year. Also, coal gasification and critical minerals are among the new priority areas for the company, said the newly-appointed chairman-cum-managing director, Hemant Pande, who took charge of the office on Monday.WCL is one the subsidiaries of Coal India Limited (CIL), which was listed in 2010. Lately, the ministry of coal has mandated listing of the subsidiaries too. A separate mandate would be issued for each of the companies.Dhanbad-based Bharat Coking Coal Limited (BCCL) and Central Mine Planning and Design Institute (CMPDI) are already listed companies. This would be followed by Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL), based in Odisha and Chhattisgarh, respectively. Speaking to TOI, Pande said, "WCL would be next in line and a mandate is expected by the year's end.""Each company also has to get individual mandate first. A number of factors, especially profitability, is considered before going ahead with the decision," said Pande. The last declared profits of WCL stand at Rs2,163 crore.WCL, along with Bharat Petroleum Corporation Limited (BPCL), is setting up a coal gasification plant at Bhadravati in Chandrapur district. "BPCL's expertise in handling gas will combine with availability of coal with WCL. WCL plans to build a plant with a capacity to produce 633.6 million metric standard cubic per day of synthetic gas," Pande said.Bhadravati is also emerging as a national hub for coal gasification. Three private sector companies are also building coal gasification facilities in the area. Pande also pointed out that WCL has already found 18 critical minerals in six of its mines. "There are plans to issue tenders for further exploration and take project forward," he said.On the mainstay business, the CMD said the plan is ensure that the coal despatches to the power sector increase. "There is no shortfall with the power plants, however, substantial coal also remains at the mines' pithead. This needs to be cleared faster to further bolster the stock with power plants," he said."WCL is also looking forward to resolve certain pending issues concerning project-affected persons (PAPs). The PSU will also be undertaking a major mine closure exercise, the biggest in the entire CIL. The plan is to close 21 mines and take up initiatives that would provide a source of livelihood to the local residents," said Pande.