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Thursday, May 11, 2006

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Nod for coal expansion projects

Our Bureau

New Delhi, May 10

The Cabinet Committee on Economic Affairs has approved the expansion of Krishnashila Opencast project and Amlohri Opencast project of Northern Coalfields Ltd. While Krishnashila Opencast project is located in the Sonebhadra district of Uttar Pradesh, the Amlohri opencast project is located in the Sidhi district of Madhya Pradesh. The Amlohri opencast expansion project involves additional capital investment of Rs 1,352.04 crore for enhancing capacity from 4 million tonnes per year to 10 million tonnes per year.

The additional coal production would meet the demand of the second phase of Rihand State Thermal Power Station of NTPC. The Krishnashila Opencast expansion project involves a capital investment of Rs 789.99 crore. This will have linkage with the captive thermal power station of Renusagar Power company of Hindalco. The CCEA has also given its approval for the revised cost estimate of Madhuband Washery Project of Bharat Coking Coal Ltd for a capital investment of Rs 271.77 crore and at the same completion cost. The project would benefit 2.5 million tonnes of coking coal per annum, producing 1.3 million tonnes clean coal per annum. It would enable the company to meet the shortage of washed coal feed to the steel sector. Madhuband washery project is located in the Jharia coalfield.

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