MCL incurs Rs 30 cr loss as mine accident disrupts operation

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Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India, has incurred around Rs 30 crore loss as mining operation in its Basundhara-Garjanabahal colliery in Sundergarh district was disrupted for nearly two weeks due to the agitation of locals following an overburden dump collapse that claimed 14 lives.

The mining operation in Basundhara colliery resumed from August 20. MCL expects to reopen Kulda coal mines today as discussions with irate villagers has reached an amicable solution, a senior official said.

"Discussion with the villagers is going on. We hope the work should start by today evening," said A K Tiwari, director (technical and operation) with MCL.

Basundhara west coal mines is one of the biggest open pit coal mine of Asia and produces nearly 20,000 tonne coal per day while output from Kulda mine is pegged at 5,000 tonne daily. The company, however, despatches around 33,000 tonne per day from both the mines as it has huge stocks.

"We are stressing on despatches of coal as we have stock of around 6.5 million tonne," said general manager of Basundhara coal mine, AK Singh. The loss sustained due to the disruption of the mining operation is estimated at around Rs 30 crore, he added.

Fourteen persons were killed and five more injured in the colliery's overburden collapse on August 10. Villagers near the mine area have been protesting since against the resumption of mines operation.

On Tuesday, the company started the Basundhara coal mine, situated three kilometres away from Kulda, after consultation with local leaders and truck association members.

Initially operation of Kulda mines was stalled due to rescue operation, but later as the locals intensified protests demanding recovery of more bodies, which they think are still buried under the debris, mining could not start on time, the company officials said.

Both the state government and MCL authorities have announced ex-gratia totalling Rs 5 lakh per person killed in the accident.

However, the villagers with the backing of a couple of political parties, have been demanding Rs 25 lakh compensation per person. Their other demand include job to one person from each of the family of deceased and their rehabilitation in a safer area.

MCL denied allegations that it did not take sufficient measures to earmark the area, where the overburden was being stacked, as prohibited. Rather, it said, action would be taken against the intruders into the area after getting the inquiry report from the Director, Mines Safety.

Local police officer said, it was unable to frame charge against anyone until the submission of inquiry report. The state government has ordered a high level administrative inquiry into the incident by the Revenue Divisional Commissioner (North).