Steel Authority of India Ltd (SAIL) will open the technical and commercial bids from the prospective mine developer cum operators (MDO) for Tasra coal block on July 10.

This is latest of SAIL’s several attempts to rope in an MDO for the coking coal block, which it obtained from BCCL in 1996.

Intending contract miners submitted their bids by June 19 for the four-million-tonnes a year project.

The proposed open cast mine project includes setting up a pithead coal beneficiation plant, rehabilitation and resettlement of people from the site and setting up a 200-300 MW thermal power unit in a joint venture with SAIL.

The challenge

The mine lease of Tasra block, including a part of contiguous Chasnalla block, in the Jharia coalfield of Jharkhand’s Dhanbad district covers 4.5 sq km or 450 hectares (ha).

However, the proposed project needs surface rights for 900.59 ha, of which SAIL has acquired 346.67 ha.

According to the bid document, the MDO will have to acquire 453.06 ha privately occupied land as also rehabilitate and resettle some 3,500 families in the proposed project area.

SAIL is also in discussion with the State Government, DVC, Fertiliser Corporation for acquisition of 102.88 ha, including 20 ha needed for the planned (minimum capacity of 3.5 mt a year) beneficiation unit.

Redeeming features

The proposed project has a number of pluses too, according to sources in the mining circles. Apart from an approved mine plan, the mining lease is under deemed extension (renewal application is being considered by Jharkhand) and the environmental clearance is in place.

The selected MDO would, however, have to obtain environmental clearance for the beneficiation plant.

The crucial but unimplemented captive project is estimated to have 28 years of life including two years of construction period. The block’s projected “minable reserves” is 96.78 million tonnes.

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