Coal news and updates

Trans-Damodar coal block goes to Durgapur Projects

Durgapur Projects Ltd (DPL), the state government-run power utility, is believed to have bagged the Trans-Damodar coal block, which was auctioned on Monday. DPL has won the block earmarked for the power sector by beating five other companies in the fray. These are: CESC Ltd, Essar Power Gujarat, JSW Energy and Lalitpur Power Generation Co. West Bengal Power Development Corporation Ltd (WBPDCL) had also evinced interest for the block but it was later disqualified as the state power utility failed to clear dues within the stipulated timeframe of December 31, 2014.

As per the Supreme Court verdict, the companies was supposed to pay a penalty of Rs 295 per tonne of coal used from the cancelled mine in retrospective effect. Among the bidders, CESC has already got Sarisathali block through auction on Sunday. However, CESC was eligible for bidding in Trans-Damodar because as per the norms any bidder can bid up to 150% of the 30-year requirement of the end use product.

Trans-Damodar is an operational open cast mine in the Borjora coal field of Bankura district in West Bengal. It has a geological reserve of 61.7 million tonne and mineable reserve of 48.4 million tonne and is within 10 km from Durgapur. The block was earlier allotted to West Bengal Mineral Trading and Development Corporation through state dispensation route. WBMTDC had extracted 1.08 million tonne through an operator Trans Damodar Coal Mining (P) Ltd. The total land required for the mine is 728 acres as per the bid document. WBMTDC had acquired 295 acres so far.

DPL, a five-decade-old multi-utility growth propeller, has coke oven batteries, by-products plant, gas grid project, thermal power plant and water Works. With such a big and potential coal block in its kitty, DPL can embark on bigger projects, said one of the sources familiar with the development.

Source: The Times of India