The West Bengal government will float a global tender seeking Expression of Interest for a Mine Developer and Operator (MDO) for the Deocha Pachami coal block, Power Minister Aroop Biswas said on Friday. The coal block in Birbhum district could see a peak investment of Rs 35,000 crore. This block is considered the world’s second-largest and holds immense potential for the state’s economy.
Biswas met a delegation from Poland, a country with expertise in underground mining, to discuss the Deocha Pachami project. The block faces the challenge of a thick layer of basalt rock before reaching the coal reserves.
The minister discussed sustainable extraction methods with the Polish delegates led by Jakub Chelstowski, Marshal (equivalent to chief minister) of Silesia province, and urged them to participate in the upcoming tender.
The minister was accompanied by senior officials including West Bengal Power Development Corporation Ltd (WBPDCL) Managing Director P B Salim.
Salim said the tender is likely to be floated within 3-4 months after the Lok Sabha elections.
West Bengal has been allotted the Deocha Pachami Harinsingha Dewanganj coal block, which is India’s largest and the world’s second-largest coal block, by the Centre in 2018.
Basalt, a major hurdle in accessing the coal, is valuable for construction purposes. Estimates suggest extracting around 140 million tonnes of basalt will be necessary.
The Deocha Pachami block boasts an indicative coal reserve of 1,198 million tonnes spread over 12.31 sq km. However, the area has houses of tribal people, forests, religious sites, and stone quarries.
While the government has offered Rs 10,000 crore in compensation and rehabilitation, some tribal communities remain hesitant to relocate.
Salim said that the state government already has 90 per cent of the required 3500 acres, while owners of 2000-2200 acres of private land already expressed interest in the project.
Central Mine and Planning Design Institute (CMPDI), a subsidiary of Coal India, has completed exploratory drilling and submitted its report to WBPDCL, the government agency responsible for implementing the project.
