Work on Deocha-Pachami coal block only after resettlement of

West Bengal Chief Minister Mamata Banerjee on Wednesday said it will proceed with work on the Deocha-Pachami coal block in Birbhum district "only" after resettlement of displaced families and addressing environmental concerns.

The state government expects to sign an MoU with the Centre in a week for handover of the block -- the world's second largest.

An upfront refundable deposit of Rs 50 crore has to be made to the central government in this regard, officials said.

"We will proceed with the project cautiously, taking care of every aspect from resettlement to environment. There are about 395 families (40 per cent tribals) in Deocha Pachami," Banerjee said after a high-level meeting at the state secretariat here.

The West Bengal Power Development Corporation Ltd (WBPDCL) has been alloted the Deocha-Pachami block in the south-western part of Birbhum, and the Dewanganj Harinsingha block in the western fringe of the district.

"We call both these blocks together as Deocha Pachami. Taking into account Dewanganj, the resettlement would be for another 389 families (total of 784 families)... We want to take everyone into confidence before we move ahead," she said.

Banerjee said the coal block would bring in investments to the tune of Rs 12,000-15,000 crore over a period of time, and has the potential to generate nearly one lakh employment opportunities.

The state government will be required to acquire about 9,000 acres out of the project area of 11,222.50 acres. Vested land is estimated to be around 2,000 acres, the officials said.

"There is forest cover on 5 per cent of the project land. We will do the needful for afforestation as per laws," the chief minister said.

"This is a big project that can supply coal for the next 100 years... It would take about five years to start commercial production," Banerjee said.

She also said a committee has been formed to execute the project.

The block has an estimated coal reserve of 2.1 billion tonnes.