The Ranchi-based Central Mine Planning and Design Institute Limited (CMPDIL) a consultant in the field of resource management, exploration, mining, environment and engineering, is likely to take up the detailed exploration of the Mandakini coal block-B in Talcher Coalfield.
The Orissa Mining Corporation (OMC), a partner company in the proposed joint venture company (JVC) for development of the coal block, has requested CMPDIL to take up the detailed exploration of the coal reserves there. The detailed exploration is likely to take about 2 to 3 years and may cost about Rs 25 crore.
After the exploration work is over, measures will be taken for preparation of the mining plan, detailed project report (DPR) and obtaining the required forest clearances, official sources said.
“Pending the formation of the JVC, we have requested CMPDIL to take up detailed exploration of reserves in Mandakini-B coal block and their response is awaited”, a senior official of OMC told Business Standard.
Mandakini coal block-B, having approximately 1200 million tonnes of reserves is located in the Angul district of Orissa. The condition of allotment of the coal block stipulated the formation of a JVC for mining coal and steps have been initiated by OMC in this regard. The ministry of coal allotted this coal block for mining by a JVC to be formed by 4 state-owned companies namely, Orissa Mining Corporation (OMC), Tamil Nadu Electricity Board (TNEB), Assam Mineral Development Corporation (AMDC) and Meghalaya Mineral Development Corporation (MMDC). The coal to be mined from this block will only be used for captive consumption to generate power and the annual production should be at least 15 million tonnes. The JVC will furnish a bank guarantee amounting to Rs 97.5 crore to the ministry of coal (MoC), Government of India (GoI), the ministry stipulated.
Meanwhile, as per the conditions of allotment, the Orissa government has approved three names to be included in the board of directors of the proposed JVC. They iclude the secretary in the steel and mines department in his capacity as the chairman of OMC, the managing director and DGM (projects) of OMC.
The board of directors will have 12 members from all 4 partnering companies and the managing director, OMC will act as the ex-officio managing director of the JVC after its formation. All the four companies have deposited Rs 2 crore each in a separate account, which will be transferred to the JVC after its formation.
Sources said, the ministry of coal (MoC) stipulated that the JVC will have to be a government company since Coal Mines Nationalisation Act, 1973 stated that the coal mining can be done only by a government company when the allotment is made under government company dispension route. Even if a private partner is roped in for the project, its share cannot exceed 49 percent.
