Construction engineering company Power Mech Projects on Monday announced that it has bagged an order from Steel Authority of India worth Rs. 30,438 crore. The Mine Development & Operation (MDO) project, Tasra OCP located in Jharia Coal Fields,Dhanbad, Jharkhand, is for the development and operation of Tasra Opencast Project in Jharkhand.
“The MDO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up coal washery of 3.5 MTPA capacity, supply of steel grade coking coal to SAIL, carrying out R&R activities and other activities incidental to mining as per the project document,” the company said in a regulatory filing. The project has a total coal extraction reserves of 96.78 MT with an annual capacity of 4 MTPA and overburden removal during the project period is over 535.29 MBCM. The concession period of the mine is 28 years including two years of development period, it added.
The project has been awarded to a consortium of Power Mech Projects Limited and PC Patel Infra, wherein PMPL is the consortium leader with 74 per cent equity stake and PC Patel Infra will hold 26 per cent stake. The company further stated that a Special Purpose Vehicle (SPV) will be formed to undertake the project.
“This project will further strengthen our robust order book and enable the Company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments. This mine has all statutory approvals in place and it is a ready to mine project,” said Sajja Kishore 8abu, Chairman and Managing Director, Power Mech Projects. “The revenue booking can be started from FY24 onwards. This project can add peak turnover of around Rs 1,200 crore plus escalation annually. With the revenue coming in from both the MDO Projects along with the existing operation and maintenance (O&M) business, we expect to witness sustainable growth both in top and bottom lines in the future for a longer period,” he added.
India is majorly dependent on costly imports for meeting its coking coal requirement and Tasra is another important step for SAIL and our nation to meet the growing demand of coking coal.