Polish major among 6 firms in fray for Deocha Pachami coal mining contract: WBPDCL

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2 days ago

'The global expression of interest (EoI) process for underground coal mining has commenced, with six participants expressing interest, including one from Poland. We are working closely and expect to complete the process soon,' WBPDCL Chairman and Managing Director P B Salim told PTI.
The world's second-largest coal mining project is expected to attract an investment of Rs 35,000 crore over its project period, according to state government estimates.
Kolkata, Jul 13 (PTI) The West Bengal Power Development Corporation Ltd (WBPDCL) is hopeful of finalising the appointment of a mine developer and operator (MDO) soon for underground mining at the mega Deocha Pachami coal block in Birbhum district, with six companies, including one from Poland, already expressing interest through a global tender process, a senior official said.
WBPDCL Director (Mining) Chanchal Goswami said the EoI was part of the broader global tender floated on December 20, 2024, along with the geological report and draft notice inviting tender (NIT).
'We are working with these six bidders to take forward the tendering process, with India's leading underground mining firms, and a Polish major, participating,' he said.
The list of bidders who have shown initial interest includes JMS Mining Pvt Ltd, Gainwell Commosales Pvt Ltd, Minop Innovative Technologies Pvt Ltd, Minsol Ltd, Maheshwari Mining Pvt Ltd, and JSW SA, the largest underground coal mining company in Poland.
'In parallel, we are also awaiting the expert study report from the National Institute of Rock Mechanics (NIRM), Bengaluru, given the complex geological challenges at Deocha Pachami. The coal seams are overlaid by thick basalt rock layers, and the NIRM report will help us finalise the mining strategy,' Salim said.
The Deocha Pachami coal block, estimated to hold 1,000 to 1,200 million tonnes of reserves, is considered among the largest in the world. However, its development has been delayed due to land acquisition issues, environmental sensitivities, and the site's challenging geology, including a hard basalt overburden ranging from 100 to 200 metres and fault lines.
'Underground mining is the only viable option for Deocha Pachami given the land acquisition constraints. WBPDCL will also prepare a parallel detailed project report (DPR) to validate the project framework, with assistance from CMPDI,' another official said.
Despite market scepticism over private sector participation in underground mining due to high technical risks and capital requirements, WBPDCL's recent pilot project for basalt rock removal has attracted strong interest.
'Basalt rock extraction has already begun. The government started bidding with a 15 per cent revenue share, but it went up to 71.5 per cent — this was unimaginable,' the official said.
The pilot project commenced after a ceremonial 'bhoomi puja' in February 2025. It spans an initial 12 acres, with plans to expand to 326 acres.
Meanwhile, the tender process has attracted scrutiny, with the CPI(M) demanding a judicial probe into the ballast mining contracts, citing concerns over transparency.
Separately, the state government is exploring underground coal gasification for around 30 per cent of the block where conventional mining may not be feasible. The remaining 70 per cent is planned to be developed through a mix of underground and opencast mining, wherever possible.
The success of the basalt extraction has provided fresh momentum for advancing Deocha Pachami's underground coal development, which is seen as crucial to West Bengal's future energy security and industrial growth, officials said. PTI BSM ACD
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