GMDC keen to mine Naini coal block in Orissa

The state-owned mining and mineral company, Gujarat Mineral Development Corporation (GMDC), has initiated talks with the Pondicherry Industrial Promotion and Development Corporation (PIPDC) to mine the entire Naini coal block in Orissa.

GMDC and PIPDC had jointly bagged the Naini block, which has 500 million tonne of coal deposits, for mining from the central coal ministry in 2007.

In order to achieve better synergies with PIPDC, GMDC is keen to mine the entire block. The ministry of coal had allocated half the block, with coal reserves of 250 million tonne to GMDC and the remaining to PIPDC.

"PIPDC does not have rich expertise in the mining sector. On the other hand, GMDC is one of the major mining and mineral companies having ample expertise in the field. Also, it has announced its plans to foray into power generation in a big way. GMDC's intention to mine the entire Naini block is aimed at having better synergies to get maximum benefits from the project," sources said.

Recently, GMDC officials held a meeting with PIPDC to express its intention to mine the entire coal block. "We have already approached the corporation and are awaiting their response to our proposal," sources close to the development said.

GMDC is also learnt to have submitted an application to lease half of the coal block awarded to PIPDC.

Naini coal block is one of the 39 coal blocks approved by Union coal ministry for allocation for various public and private sector power companies to meet the growing needs of the power sector.