Power Mech Projects bags 30,438 cr Mine Development & Operation Project from SAIL

State-owned steel producer SAIL has awarded Power Mech Projects a mine development and operation (MDO) project worth Rs 30,438 crore. According to a regulatory filing, "Tasra opencast project, located at Jharia Coal fields in Dhanbad district of Jharkhand, is being developed and operated by a consortium of Power Mech Projects Ltd (PMPL) and PC Patel Infra Pvt Ltd."

With a 74% ownership investment, PMPL leads the consortium, followed by PC Patel Infra with a 26% stake. The contract has a 28-year term, including a 2-year development phase. The building of mine infrastructure, removal of overburden, extraction of coking coal, crushing, transportation, and establishment of a 3.5 million-ton coal washery will be the main components of the MDO contract.

Additionally, in accordance with the project document, it will provide steel quality coking coal to SAIL and conduct other mining-related activities. The project has 96.78 million tonnes (MT) of total coal extraction reserves, 4 MTPA of annual capacity, and 535.29 MBCM of load removal.

Sajja Kishore Babu, Chairman and Managing Director of Power Mech Projects, stated that the project "will further strengthen our robust order book and enable the company to diversify its order book which is in line with its strategy to have an optimal mix between power and non-power segments." The mine is a ready-to-mine project with all necessary legislative approvals in place.