SAIL, BCCL Signed MoU to Develop Two Coking Coal Blocks in Bengal

Key Highlights

• SAIL and BCCL signed an MoU for the joint development and operation of two coal blocks in West Bengal.
• The Indikattta Ramnagar and East of Damagoria (Kalyaneshwari) blocks have a combined peak rated capacity of around 4 million tonnes a year.
• The first phase is estimated to have around 7.9 crore tonnes of extractable coal reserves.
• Mining will begin at the Kalyaneshwari block, while overburden will be dumped at the Ramnagar block; the arrangement will be reversed in the second phase.
• The project is aimed at increasing domestic coking coal availability for the steel industry and reducing import dependence.
• PM’s adviser Tarun Kapoor separately reviewed Coal India’s production, supply, diversification and coal gasification plans in Kolkata.

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Dhanbad: Steel Authority of India Ltd (SAIL) and Bharat Coking Coal Ltd (BCCL) signed an MoU on Friday for the joint development and operation of two coal blocks in West Bengal, taking forward efforts to increase domestic coking coal production. The Indikatta Ramnagar block of SAIL and East of Damagoria (Kalyaneshwari) block of BCCL have a combined peak rated capacity of around 4 million tonnes per annum, with about 7.9 crore tonnes of extractable reserves estimated in the first phase.

Mining and Dumping Plan

Under the proposed arrangement, mining and overburden removal will be carried out in a coordinated manner across the two blocks. In the first phase, mining will be undertaken at the Kalyaneshwari block, while overburden will be dumped at the Ramnagar block. The arrangement will be reversed in the second phase. The companies said the integrated approach would allow better use of the coal resources spread across the two blocks.

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The agreement comes as the Steel industry seeks greater availability of Coking Coal from domestic sources. Coking Coal is an important raw material for Steel production, and higher domestic output can help reduce the industry’s dependence on imports. The joint development of the two blocks is therefore part of the broader effort to increase domestic Coking Coal availability and support the country’s push for greater self reliance in raw materials.

Coal India Reviewed Production and Supply

The adviser of Prime Minister Narendra Modi, Tarun Kapoor reviewed Coal India’s production and supply performance at the company’s corporate office in Kolkata on Friday. The meeting covered higher coal production, supply to thermal power plants, diversification and the progress of coal gasification projects. Coal India has produced more than 310 million tonnes of coal so far in the current financial year and supplied over 371 million tonnes, including more than 291 million tonnes to the power sector. Coal India chairman B. Sai Ram, director (technical) A. Ghatak and other senior officials attended the meeting.

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