The Mahanadi Coalfields Limited (MCL) plans to operate Garjanbahal open cast coal mine in Sundergarh district, which recently received forest clearance, next month.
The ten million tonne annual capacity project was pending for start of work for long time due to lack of forest clearance.
Developing this mine having a reserve of 262 million tonne will cost about Rs 400 crore. The Union cabinet had approved the project in 1999.
However, like Kulda and Basundhara mines of MCL, this coal project has no rail link and the nearest rail line is 35 Kms away. Keeping this in view, MCL authorities plan to rope in a power generation company to set up a pit head power station there to overcome the dispatch problem as road dispatch by trucks is not feasible to transport huge amount of coal from the mine.
The final decision on having a joint venture with a power company for Garjanbahal coalmine is to be taken by the Union coal ministry very soon, sources said. After that the name of the participating company will be decided by the appropriate authority.
MCL needs this new project to increase its production capacity. It recently has started work on three new projects, Bhubaneswari, Kulda and Kaniha mines after tackling vexed issues relating to land acquisition and rehabilitation of affected persons.
As on date, the coal output of Talcher coalfield is 20 per cent less than the corresponding period of the last year while IB valley coalfield including Basundhara area registered a growth of about seven per cent. Non-availability of land and frequent stirs by affected villagers are said to be the cause of decline in production of Talcher coalfield.