Bengal to seek global bids for Deocha Pachami coal block

28 Feb 2024 CW Team

During discussions with a delegation from Poland, a country known for its expertise in underground mining, Biswas addressed the challenges faced by the Deocha Pachami project. The block encounters the obstacle of a thick layer of basalt rock before reaching the coal reserves.

Sustainable extraction methods were deliberated upon during the meeting with Polish delegates led by Jakub Chelstowski, Marshal of Silesia province, who is equivalent to a chief minister. Biswas urged them to participate in the upcoming tender. The minister, accompanied by senior officials, including P B Salim, Managing Director of West Bengal Power Development Corporation (WBPDCL), discussed the likelihood of the tender being floated within 3-4 months after the Lok Sabha elections.

In 2018, the Centre allotted the Deocha Pachami Harinsingha Dewanganj coal block to West Bengal, which is the largest in India and the second-largest globally. The presence of basalt, a major obstacle to accessing the coal, is valued for construction purposes. It is estimated that extracting approximately 140 million tonnes of basalt will be necessary.

The Deocha Pachami block is noted for having an indicative coal reserve of 1,198 million tonnes spread over 12.31 sq km. However, the area is inhabited by tribal people and contains forests, religious sites, and stone quarries.

Despite the government offering Rs 100 billion in compensation and rehabilitation, some tribal communities are reluctant to relocate. Salim noted that the state government already possesses 90 per cent of the required 3500 acres, and owners of 2000-2200 acres of private land have already expressed interest in the project.

Power Minister Aroop Biswas announced that the West Bengal government intends to issue a global tender to solicit Expression of Interest for a Mine Developer and Operator (MDO) for the Deocha Pachami coal block, with a potential investment of Rs 350 billion. According to Biswas, this coal block, located in Birbhum district, is regarded as the world's second-largest and holds significant economic potential for the state. During discussions with a delegation from Poland, a country known for its expertise in underground mining, Biswas addressed the challenges faced by the Deocha Pachami project. The block encounters the obstacle of a thick layer of basalt rock before reaching the coal reserves. Sustainable extraction methods were deliberated upon during the meeting with Polish delegates led by Jakub Chelstowski, Marshal of Silesia province, who is equivalent to a chief minister. Biswas urged them to participate in the upcoming tender. The minister, accompanied by senior officials, including P B Salim, Managing Director of West Bengal Power Development Corporation (WBPDCL), discussed the likelihood of the tender being floated within 3-4 months after the Lok Sabha elections. In 2018, the Centre allotted the Deocha Pachami Harinsingha Dewanganj coal block to West Bengal, which is the largest in India and the second-largest globally. The presence of basalt, a major obstacle to accessing the coal, is valued for construction purposes. It is estimated that extracting approximately 140 million tonnes of basalt will be necessary. The Deocha Pachami block is noted for having an indicative coal reserve of 1,198 million tonnes spread over 12.31 sq km. However, the area is inhabited by tribal people and contains forests, religious sites, and stone quarries. Despite the government offering Rs 100 billion in compensation and rehabilitation, some tribal communities are reluctant to relocate. Salim noted that the state government already possesses 90 per cent of the required 3500 acres, and owners of 2000-2200 acres of private land have already expressed interest in the project.