In a significant development, Power Mech Projects Ltd (PMPL) has been awarded a massive mine development and operation (MDO) project worth ₹30,483 crore by the renowned state-owned steel maker, Steel Authority of India Limited (SAIL). The project, known as the Tasra opencast project, is located in the rich Jharia Coalfields of Dhanbad district, Jharkhand.
The prestigious contract was awarded to a consortium led by Power Mech Projects Ltd (PMPL) in partnership with PC Patel Infra Pvt Ltd, holding a 74% and 26% equity stake, respectively. The duration of the contract spans an impressive 28 years, which includes a 2-year period dedicated to the development of the site.
The scope of the MDO contract encompasses various essential components of mine infrastructure development, including overburden removal and extraction of coking coal. Additionally, it involves crucial tasks such as crushing, transportation, and the establishment of a coal washery with a capacity of 3.5 MTPA. The ultimate aim of the project is to supply high-quality steel-grade coking coal to SAIL while undertaking various other mining-related activities as specified in the project document.
The Tasra opencast project boasts substantial coal extraction reserves, with an estimated quantity of 96.78 million tonnes (MT). It has an annual capacity to extract 4 million tonnes per annum (MTPA) of coking coal, alongside the mammoth task of removing over 535.29 million bank cubic meters (MBCM) of overburden.
Sajja Kishore Babu, CMD of Power Mech Projects, expressed his enthusiasm regarding the recent award, stating, “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.”
One of the remarkable highlights of the project is that it has already secured all necessary statutory approvals, signifying that it is a ‘ready-to-mine’ project. This aspect is bound to expedite the commencement of operations, ensuring timely execution of the project’s objectives.
The awarding of the MDO contract to Power Mech Projects Ltd is not only a testament to their expertise in handling complex mining operations but also a milestone in reinforcing the company’s position as a leading player in the industry. The collaboration with PC Patel Infra Pvt Ltd adds further strength to the consortium’s capabilities, providing a formidable partnership to execute the project seamlessly.
The project is anticipated to create numerous employment opportunities, contributing to the socio-economic development of the region. Additionally, the enhanced supply of coking coal to SAIL is expected to bolster the steel production capabilities of the nation, which aligns with India’s broader vision of self-sufficiency in steel production.
