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

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

The consortium has been formed between NCC Limited (formerly Nagarjuna Construction Co Ltd) and BGR Mining & Infra Private Limited 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 MDO Project basically comprises of activities relating to mine development, excavation of over burden and coal and transportation and related activities.

The project has coal reserves of nearly 400 million tonnes and over burden of 1650 million cubic meters. 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 peak rated capacity of the mine is 15 million tonnes per annum to be achieved by the 6th year of commencement of operation.

The value of the project is estimated to be Rs 35,000 crore over 30 years and the annual revenue at rated capacity is about ₹ 1335 crore at current prices. The contract provides for escalation of mining fees.

A Special Purpose Vehicle Pachhwara Coal Mining Private Limited 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 Limited and some of the subsidiaries of Coal India Limited.

As per the production schedule, 4 million tonnes of coal is targeted to be achieved in the 1st year of Operation and yield revenue stream, according to A A V Ranga Raju, Managing Director of NCC.

http://www.thehindubusinessline.com/companies/nccbgr-consortium-bags-mining-development-contract-for-pachhwara-coal-block/article9240511.ece

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