The NCC-BGR Consortium has been awarded the Pachhwara North Coal Block Mine Developer and Operator Project by the West Bengal Power Development Corporation Ltd.

The consortium has been formed between NCC Ltd (formerly Nagarjuna Construction Co Ltd) and BGR Mining & Infra Private Ltd with 51:49 per cent equity.

The Pachhwara North Coal Block, located in Pakur, Jharkhand, has been allocated by the Coal Ministry to the WBPDCL. The coal extracted is for use for their power plants in West Bengal.

This project involves activities relating to mine development, excavation of over burden and coal transportation and related activities.

The project is estimated to have coal reserves of nearly 400 million tonnes and over burden of 1650 million cubic metres.

The rate of mining fee per ton of coal is about ₹890 including taxes.

The total duration of the project is about 30 years and will be extended for further period until the coal reserves are exhausted.

The value of the project is estimated at ₹35,000 crore over 30 years and the annual revenue at rated capacity is about ₹1,335 crore at current prices. The contract provides for escalation of mining fees.

As per the production schedule, 4 mt is targeted to be achieved in the first year of operation and yield revenue stream, according to AAV Ranga Raju, Managing Director, NCC.

A Special Purpose Vehicle Pachhwara Coal Mining Pvt Ltd has been formed for execution of the project. The SPV entered into the coal mining agreement on October 10 at Kolkata.

BGR Mining & Infra is a coal and lignite mining company associated with Singareni Collieries Co Ltd, Neyveli Lignite Corporation Ltd and some of the subsidiaries of Coal India Ltd.

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