The West Bengal government is keen on entering commercial coal mining and intends to sell 25% to 30% of its output in the open market from the world’s second largest block allotted to the state earlier this year.
Commercial sale is expected to provide economies of scale to the operation bringing down costs which, otherwise, are expected to be high due to difficult geological build of the block.
“All mining activities are associated with some difficulties but with larger scale of operations and advanced technologies these issues can be resolved,” state finance minister Amit Mitra told reporter at the Global Mining Summit organised by Confederation of Indian Industry in Kolkata on Wednesday.
During June this year, the Centre allotted Deocha Pachami to Bengal’s power generation company West Bengal Power Development Corporation Ltd (WBPDCL) as a captive block. Preliminary estimates suggests it is may hold 2.1 billion tonnes of reserves. Operations of the block will be undertaken by Bengal Birbhum Coalfields, a special purpose vehicle floated for purpose. Read more
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