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Parbatpur: In the bowel of controversy

Keeping it going, amid closure worry, at the only allocated mine that CAG reported as working on more than a spreadsheet

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Shine Jacob Parbatpur (Jharkhand)
Last Updated : Jan 24 2013 | 2:10 AM IST

Down 650 metres in a coal mine, it seemed an endless journey with a limited choice — find a way out or look around, with a torch.

Seemingly, only gloomy faces await at this mine, the only producing one mentioned in the Comptroller and Auditor General’s now-famous report on coal block allocation. Anxious villagers have just one question, “Saheb, aap kya CBI se hai? Humne apna zameen is mine ke liye diya hai..kya yeh colliery bandh ho jayega? Humara kaam ka kya hoga? (Sir, are you from the CBI? We gave our land for this..will the colliery close? What happens to our jobs?).”

In the 150-minute journey from Dhanbad, the bumpy road is perhaps an indication of what’s ahead for the block’s promoter, Electrosteel Castings Ltd.

Background
Starting from 2010, the block has produced 600,000 tonnes of coal for its pig iron units at Khardah in West Bengal and Kalahasti in Andhra Pradesh. “This was from the open cast colliery that we have. As far as underground is concerned, we have already drilled about 750 metres down and expect to start commercial production by December this year,” says N Prasad, head of the Parbatpur mines, with a guarded confidence while brushing aside questions on the CAG report.

The company says what helped make it the only one to start production among the 57 blocks mentioned in the CAG report is that Parbatpur hardly comes under any forest area. This helped it skip forestry clearances, a process that can easily take more than a year.

Parbatpur is among the 29 blocks being reviewed by an inter-ministerial group from the CAG list of 57, which allegedly translated into a loss of Rs 1.86 lakh crore to the national exchequer. This block has an estimated reserve of 231 million tonnes.

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“A lot of investment has gone to the project, about Rs 600 crore. We are confident that nothing is going to happen to this project and, as you can see, a lot of work is going on in the ancillary units and the underground mine. The block is buzzing with activity,” H Choudhary, general manager of the block, says while showing one around the Rs 60-crore washery unit.

Every eye that follows reflects the tension within the mine. It is, after all, the only source of income for about 1,000 people, with 500 on the payroll and another 500 on a contractual basis.

Going into the technicalities, Prasad says the work in the underground mine started in 2008, with technology from Chinese major CC5C. As there was a “fault” dividing the property, the officials had to go for four incline entrances on two sides, adding to the investment. Electrosteel says that on the one side, the drilling had been done to an extent of 800 metres; on the other side, it reached about 500 metres. For ventilation purposes, one can see two shafts, one vertical and a horizontal.

“We are using compressed air technology here. Though the geological reserves mentioned are 231 mt, the extractable reserves here is around 140 mt. Hence, it will take at least 10-15 years for the mine to be profitable,” Prasad says.

Area villagers, however, have a different story. “I was working there and for the last two months, they are saying that the mine is closed and we have no work for some time. I am finding it difficult to run my family; we need some stability as far as jobs are concerned,” alleges Prahlad Das, a mine worker.

The company has an answer to Das' allegation. The company was exploring an open-cast colliery and with heavy rains, it was impossible to operate, which one can witness at the site. It also affirms that a report on the extent of open-cast mining is awaited, though the villagers assert that it happened after the Coalgate issue came to the limelight.

“They stopped work after the scam came to light,” says Nirmal Chandra Pandey, a local priest. However, Prasad and Co, unhurt by what’s happening in Parliament and the media, were charting their roadmaps for the big day in December. Two international companies are involved with the project.

Worries
Meanwhile, kilometres away at Khardah, K K Binani, chief operating officer of the group’s facility, was anxious about the future source of coking coal in the wake of Coalgate. The firm owns the North Dhadhu block, apart from Parbatpur.

Back at the Kolkata headquarters, a visibly upset Electrosteel Castings’ executive director, H K Modi, rues, “The Parbatpur block was discovered in the 1970s, nobody wanted that difficult block. We are hurt that people are raising questions when we have done the impossible. There might have been some underhand deals, but those blocks which have a clean chit should be spared.”

Answering the allegation on whether it tried to divert coal to its Bokaro steel plant. “Yes, we had applied for it to the coal ministry. It happened thrice before and, hence, there is nothing wrong with it. We are waiting for their response,” he adds. On the way back from Parbatpur, we had to travel an additional 25 km to avoid a bumpy ride.

Modi puts up a brave face, “It is not the end-game,” he says.

This is the first instalment of a four-part series

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First Published: Sep 15 2012 | 12:58 AM IST

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