 "SAIL awards Rs 30,483 crore mine development project to Power Mech")
Power Mech Projects has been awarded a mine development and operation (MDO) project of Rs 30,438 crore by state-owned steel maker SAIL.
"This project is being awarded to a consortium of Power Mech Projects Ltd (PMPL) - PC Patel Infra Pvt Ltd for development and operation of Tasra opencast project, located at Jharia Coal fields in Dhanbad district of Jharkhand," a regulatory filing said on Monday.
PMPL is the consortium leader with 74 per cent equity stake and while PC Patel Infra has 26 per cent stake.
The duration of the contract is 28 years which includes 2 years of development period.
The MDO contract will primarily comprise mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up of coal washery of 3.5 MTPA capacity.
Besides, it will supply steel grade coking coal to SAIL and carry out other activities incidental to mining as per the project document.
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The project has total coal extraction reserves of 96.78 MT (million tonne) with an annual capacity of 4 MTPA and over burden removal of over 535.29 MBCM.
"This project will further strengthen our robust order book and enable the company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments," Sajja Kishore Babu, Chairman and Managing Director of Power Mech Projects said.
The mine has all statutory approvals in place and it is a ready to mine project.
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