South Eastern Coalfields Ltd (SECL) is all set to commission a Rs 300 crore washery project at Dipka on a build own and operate (BOO) basis.
The project is being commissioned in conjunction with Robert Schaffer Inc (RSI) of the US, which is making the entire investment.
The Dipka expansion will increase production by up to 20 million tonne, G K Jha, chairman and managing director of SECL, said. SECL plans to enhance production of coal to 83 million tonne by 2007.
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The plant, when commissioned, will have an installed capacity to process 6 million tonne of coal. Coal processed from the washery will be supplied to the Maharashtra State Electricity Board (MSEB) and the Gujarat State Electricity Board (GSEB).
Robert Schaffer Inc is negotiating the rates at which coal could be supplied with the MSEB.
Currently, RSI's priorities revolve around the MSEB. If the said deal works out, the entire coal processed from the washery will be consumed by the Maharashtra government-owned power utility.
The project is expected to be operational in three years time and will be the first non-coking washery in the country.
Sources close to the development said negotiations with MSEB are expected to be completed in a month's time.
SECL produced 33.04 million tonne of coal till October this year. As per the company's plans, SECL is targeting 66 million tonne in 2002-03, 70 million tonne in 03-04, 74 million tonne in 04-05, 78 million tonne in 05-06 and 84.9 million tonne in 06-07.