OMC to seek coal block for its subsidiary

As part of its plan to foray into coal mining business, the state owned Orissa Mining Corporation (OMC) intends to file formal application with the Union coal ministry for allotment of coal mines in favour of its coal subsidiary to be formed soon.

Following the in-principle approval by the government to OMC’s proposal to float a new subsidiary for coal mining, the Corporation has geared up to form the new subsidiary.

With large scale industrialization taking place in the state, there is growing demand for coal from steel, aluminium and power industries which the state owned PSU intends to cash on.

“OMC has received the in-principle approval to form a subsidiary for taking up coal mining and the new wholly owned subsidiary would be launched soon”, Ashok Dalwai, secretary, steel and mines, Orissa government and the Chairman, OMC, told Business Standard.

Sources said, chief minister Naveen Patnaik has written a letter to the prime minister requesting him to allot coal blocks to the subsidiary company.

Similarly, Orissa chief secretary, Tarunkanti Mishra has also written to the Union coal secretary seeking allotment of coal mines in favour of the OMC’s coal subsidiary.

Meanwhile, the company expressed the hope that it would be able to complete the new chrome ore beneficiation plant being set up at Kaliapani by the end of this year.

“The Letter of Intent (LoI) for the project has been issued to Humboldt Wedag India Private Ltd and the project is likely to be completed as scheduled,” a senior company official said. The projects, entailing an investment of Rs 40 crore, would have a feed capacity of 1.5 lakh tonne per annum at Kaliapani to upgrade low grade chrome ore to high grade.

Simultaneously, the existing 20 year old chrome ore beneficiation (COB) plant located at Kaliapani is being modified to augment its efficiency to upgrade low grade ore to high grade chrome ore.

Besides, the pre-tender process is on for setting up a tailing disposal system with recovery of tailing for possible commercial use of safe disposal. This project will cater to the existing chrome ore beneficiation plant and the new chrome ore beneficiation plant being set up at Kaliapani.

Sources said, OMC is also in the process of finalising the executant agency for its proposed Rs 350 crore mechanised mining, transportation and wagon loading facility at the Daitari mines and the process is likely to be completed in about 6 months.