The Hindu Business Line : Eastern Coalfields to outsource coal for Rajmahal mine

The uncertainty over the modus operandi of capacity expansion of the Rajmahal opencast coal mine is over with the Union Government now allowing Eastern Coalfields Ltd to undertake the job through outsourcing option of coal and overburden (OB). This suggests that the entire 6.5 million tonne (mt) additional mining capacity will be created through outsourcing. The existing production of 10.5 mt from the mine will continue to be done departmentally.

Meanwhile, this large high-grade non-coking coal producing subsidiary of Coal India Ltd (CIL) has floated a global tender inviting bids from internationally reputed companies for the proposed outsourcing jobs. The bids will be accepted till this month end. A CIL source said that jobs would be awarded by July to ensure that production from the expanded section of the mine could begin within a year. Owing to main part of the expansion programme to be done through outsourcing, ECL may need to make marginal direct investments of around Rs 50 crore, leaving almost the entire cost of the expansion programme on the prospective private parties who will invest in the form of supply of equipment and heavy earth moving equipment. The cost on account of machinery and equipment will be met through guaranteed production and sale-profit on supplies by private operators.

It may be mentioned that the Rajmahal coal mine is dedicated to meet the 100 per cent requirement of National Thermal Power Corporation's 1,600 MW super thermal plant at Farakka in West Bengal and 840 MW capacity plant at Kahalgaon in Bihar. Since both are expanding generation capacities, the capacity expansion of Rajmahal mine assumes significance.