Mining &Allied Activities
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FSNL to venture into contract mining post empanelment of private contractors
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FSNL will bid for contracts and get them executed by private sector contractors
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CapEx and recruitment/management of workforce to rest with private contractors
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FSNL to manage networking with clients and oversee and ensure that mining operations are carried out by the sub contractor to client satisfaction and meet all regulatory requirements
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FSNL is already into operations involving material handling, extraction and open cast mining can be natural way of expansion for it. Similarly, it can also foray into civil/structural contracts.
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Both the sectors are getting thrust from Government via the expenditure/projects planned in Infrastructure sector and Power sector. Mining is dominated by government companies and FSNL being a government company will enjoy preferential treatment over competitors.
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Contract for open cast mining of Coal, Chromite, Manganese, Limestone, Dolomite
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Civil/structural contracts for buildings/workshops & fabrication works
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Marketing to be done throughout India via central office and regional offices.
OPPORTUNITY
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For the projects, FSNL has the opportunity to expand its revenue base with its existing clients SAIL. FSNL has already good contracts with the client and it can use its existing network to offer new services to SAIL.
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Major consumer or clients in the mining sector in which FSNL is venturing are PSU or Government companies (SECL, NMDC, SAIL etc.). FSNL is also discussing for joint venture for mining & allied activities. FSNL being a government company is expected to get preferential treatment over rivals and FSNL can exploit this advantage to maximum.