The future of SAIL’s domestic prime coking coal asset in Jharia coalfield in Jharkhand remains uncertain. The field has estimated reserves of 96.78 million tonnes.
Last year, SAIL had received three technical and commercial bids from prospective mine developers-cum-operators (MDO) for the Tasra coal block, including a part of the contiguous Chasnalla block. However, it is yet to decide on the issue, said sources.
Bids were submitted on or before June 19 last year for the block in Jharkhand’s Dhanbad district.
Sources involved in the process, say the delay in taking a decision is intriguing. SAIL had floated tenders several times in the past decade to select a contract miner only to cancel them later.
In the last attempt to rope in an MDO or a contract miner, SAIL had protected its interest in the tender document for the 4 million tonnes a year project.
Apart from the development of the proposed open cast mine, the project included setting up a pithead coal beneficiation plant, rehabilitation and resettlement of people from the proposed mine site and setting up of a 200-300 mw thermal power plant in a joint venture with SAIL.
Though the mine lease area covers 4.5 sq. km or 450 hectares (ha), the proposed project needs surface rights for 900.59 ha.
According to the bid document, the MDO is required to acquire 453.06 ha of privately occupied land as also rehabilitate and resettle some 3,500 families in the proposed project area. Of the total required surface rights, SAIL has already acquired 346.67 ha.
It is also in discussions with the State Government, DVC, and 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.
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 is also to get a detailed project report prepared by CMPDIL.
But, the project operator has to obtain clearance from the Ministry of Environment and Forests for the coal beneficiation plant.
This captive resource exploitation project, for the coking coal-deficient SAIL, is estimated to have 28 years of life including two years for construction.
SAIL had obtained the block from Bharat Coaking Coal Ltd in 1996.