New Delhi: Power Mech Projects Ltd, an industrial services and construction company providing services in power and infrastructure sector, has secured a mine development and operation (MDO) project from the Steel Authority of India Ltd. (SAIL) for an estimated value of ₹30,438 crore over the contract period.
The company will develop the Tasra open cast project, located in Jharia Coal Fields in Dhanbad, Jharkhand. The concession period of the mine is 28 years, including two years of development period.
The order comprises mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up coal washery of 3.5 MTPA capacity, supply of steel grade coking coal to SAIL, carrying out R&R activities and other activities incidental to mining as per the project document.
The project has total coal extraction reserves of 96.78 MT with an annual capacity of 4 MTPA and over burden removal during the project period is over 535.29 MBCM.
The project has been awarded to a consortium of Power Mech Projects and PC Patel Infra, with the former being consortium leader with a 74% equity stake and PC Patel Infra holding 26%. A special purpose vehicle (SPV) will be formed to undertake the project.
“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. This mine has all statutory approvals in place and it is a ready to mine project. The revenue booking can be started from FY24 onwards. This project can add peak turnover of around Rs. 1,200 crore plus escalation annually,” said Sajja Kishore Babu, chairman and managing Director, Power Mech Projects.
India is majorly dependent on costly imports for meeting its coking coal requirement and the Tasra project is important for SAIL to meet the growing demand of coking coal. KBP and Tasra MDO’s together will generate 9 MTPA when peak capacities of the respective mines are achieved and the coking coal extracted through these mines will definitely be an inexpensive alternative to the coking coal which the country is currently importing and will save forex outflow.
This project is a strategic step in forward integration in the company’s activities, utilizing the technical know-how along with project implementation capability.
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Updated: 31 Jul 2023, 01:06 PM IST
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