Bengal seeks greater clarity on Deocha

The West Bengal government has sought greater clarity on Deocha Pachami coal block in Birbhum from the Centre in connection with performance guarantee calculations and implementation timeframe.

The Centre has said it is ready to sign the agreement for the handover of the second largest coal mine in the world.

"We are ready and it is for West Bengal Power Development Corporation to come forward and sign the agreement," Coal secretary Sumanta Chaudhuri said on the sidelines of a FICCI organised event here on Wednesday.

A senior West Bengal government official told PTI on Wednesday that the state is seeking greater clarity about performance guarantee like whether lumpsum payments should be made or over several years as and when mining expands.

A state power department official said, "We have also suggested that the Centre revise the timelines. Once these operational issues are sorted out, the agreement will be signed".

Earlier, state finance minister Amit Mitra had said Bengal would seek permission from the Centre for selling coal in the open market from the block after meeting captive demand.

Bengal is the sole allottee of Deocha Pachami, which has an estimated reserve of 2.1 billion tonnes.

Bengal chief minister Mamata Banerjee had said investments worth Rs 12,000 crore to Rs 15,000 crore would be required in developing the block, which may help create 100,000 jobs and usher in rapid economic development in the area.

But the overburden above the coal assets turned out to be one of the key reasons questioning viability.

West Bengal Power Minister Shobhandeb Chattopadhyay had said Polish companies have expressed interest to study the coal block that has a 500-metre-thick layer of overburden (an outer surface covering the coal seams).

The block was earlier allotted to six shareholder states - West Bengal, Karnataka, Bihar, Punjab, Tamil Nadu and Uttar Pradesh and public sector undertaking Satluj Jal Vidyut Nigam Limited. Barring Bengal the rest exited questioning its viability.