Steel Authority’s MDO Project In India has been awarded to the leading industrial services and construction company, Power Mech Projects Limited. The Mine Development and Operation (MDO) site’s location is within Jharia Coal Fields, Dhanbad, Jharkhand.
The MDO contract from the Steel of Authority India Ltd (SAIL), primarily includes the supply of steel grade coking coal. Moreover, it features mine infrastructure development, as well as the removal of overburden and extraction of coking coal. in addition to the crushing, transportation, and setting up of coal washery with a 3.5 MTPA capacity. As part of the contract document, Power Mech will also carry out R&R activities.
PC Patel Infra will also form part of the project’s consortium, with PMPL as the consortium leader with a 74% equity stake. Meanwhile, PC Patel Infra will have a 26% stake.
Steel Authority’s MDO Project In India Capacity
The Steel Authority’s MDO Project In India boasts an annual capacity of 4 MTPA. According to a press release, its value is approximately Rs 30,438 crores. Furthermore, it is reported to have total coal extraction reserves of 96.78 MT. Alongside two years for the development period, the project’s concession period is 28 years.
As a whole, India remains heavily dependent on costly imports, in order to meet its coking coal demand. Thus, Steel Authority’s MDO Project In India serves as a crucial step toward mitigating India’s import dependency. This in turn will lead to inexpensive and more reliable alternatives to the country’s coking sector. Additionally, an official report noted that the development will also save forex outflow.
While speaking about the project, PC Patel’s Chairman and Managing Director noted that it will strengthen and diversify the company’s order book. Additionally,Sajja Kishore Babu, added the project will potentially increase peak turnover of about Rs 1,200 crores, including escalation, annually.