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New UserNCC-BGR consortium bags mining development contract for Pachhwara coal block
20 Oct 2016
The NCC-BGR Consortium has been awarded the Pachhwara North Coal Block Mine Developer and Operator Project (MDO Project) by the West Bengal Power Development Corporation Limited.
The consortium has been formed between NCC Limited (formerly Nagarjuna Construction Co Ltd) and BGR Mining & Infra Private Limited with 51:49 per cent equity.
The Pachhwara North Coal Block, located in Pakur, Jharkhand, has been allocated by the Coal Ministry to the WBPDCL. The coal extracted is for use for their power plants in West Bengal.
This MDO Project basically comprises of activities relating to mine development, excavation of over burden and coal and transportation and related activities.
The project has coal reserves of nearly 400 million tonnes and over burden of 1650 million cubic meters. The rate of mining fee per ton of coal is about ₹ 890 including taxes.
The total duration of the Project is about 30 years and will be extended for further period until the coal reserves are exhausted.
The peak rated capacity of the mine is 15 million tonnes per annum to be achieved by the 6th year of commencement of operation.
The value of the project is estimated to be ₹35,000 crore over 30 years and the annual revenue at rated capacity is about ₹ 1335 crore at current prices. The contract provides for escalation of mining fees.
SOurce: THe Business Line