Bhopal, Aug 29 (KNN) The Madhya Pradesh State Mining Corporation and Chhattisgarh State Mineral Development Corporation have recently signed a Memorandum of Understanding with the Government of India under which 25% of the coal explored by Kerwa Coal Ltd Company would be allocated to MSMEs in both the states.

According to a media report both the states MP and CG have formed the joint venture, Kerwa Coal Limited Company, which will conduct coal mining in Korba district in Chhattisgarh. The company will explore 11 square kilometre area and will excavate 112.94 million ton coal.

Chhattisgarh will have the 51 per cent of share and the MP will have 49 per cent. The local management will be handled by the CG like environmental clearances and others issues.

The sale of the coal will be done online, 25 per cent for the MSME, 10 per cent on spot sale and the rest on the long term purchase agreement through bidding.

However, in any five year block, the block allocatee is required to produce at least 80 per cent of the coal as per the Mining Plan.

Provided that the flexibility in coal production schedule as permitted in above clause shall be applicable only from the financial year subsequent to the financial year in which the Mine will achieve the Peak Rated Capacity, the media report added.

It is clarified that in such event, the MSME Share on annual basis shall remain the same.