Hyderabad: Power Mech Projects Limited, a leading power and infrastructure sector services and construction company, has won a Mine Development and Operation (MDO) project from the Steel Authority of India Ltd. at Tasra OCP for an estimated value of Rs. 30,438 crore. The project is located in Jharia, in the Dhanbad district of Jharkhand.
According to the project document, the MDO contract will primarily include mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up a 3.5 MTPA coal washery, supply of steel-grade coking coal to SAIL, R&R activities and other mining-related activities.
The project has total coal extraction reserves of 96.78 MT, an annual capacity of 4 MTPA, and overburden removal of over 535.29 MBCM during the project period. The mine’s concession period is 28 years, including two years of development.
The project has been awarded to a consortium led by Power Mech Projects Limited and PC Patel Infra, with PMPL holding a 74% equity stake and PC Patel Infra holding a 26% stake. To carry out the project, a Special Purpose Vehicle (SPV) will be formed.
“India is heavily dependent on costly imports to meet its coking coal requirement, and Tasra is another important step for SAIL and our nation to meet the growing demand for coking coal,” said in response to the project award.
When the peak capacities of the respective mines are reached, the KBP and Tasra MDOs will generate 9 MTPA, and the coking coal extracted through these mines will undoubtedly be a cheaper alternative to the coking coal that the country is currently importing, saving forex outflow.
Power Mech Projects Limited focuses on optimizing power and non-power sectors to maximize investments in the National Infrastructure Pipeline (NIP).