Team News Riveting
Raipur, January 1
Prakash Industries Limited (PIL) has further inched closure to start the commercial mining at its Chhattisgarh coal mine.
The diversified company having interest in mining, steel and power, Prakash Industries emerged as the highest bidder for Bhaskarpara Coal Mine in Chhattisgarh in the auction conducted by the Ministry of Coal in 2019. The mine has an extractable reserve of 24.06 million tonnes and its coal is highly suitable for use in Prakash Industry’s integrated steel plant at Janjgir-Champa district in Chhattisgarh. Currently, the company is buying coal from CIL and foreign companies.
The PIL expects Bhaskarpara Coal Mine to enhance its operating margins. “The Company is pleased to inform that today it has made payment of Rs 23.25 crore to the Forest Department, Distt. Surajpur, Chhattisgarh, towards Net Present Value (NPV) of diverted forest land to be used for its Bhaskarpara Commercial Coal Mine in Chhattisgarh,” the company said in a regulatory filing today.
As informed earlier, the company has made payment of Rs 35.12 crore on December 26, 2023, to the Office of Collector, Janjgir-Champa, Chhattisgarh, towards premium of land to be transferred to Forest Department for Compensatory Afforestation in lieu of forest land with respect to Bhaskarpara Commercial Coal Mine in Chhattisgarh, it added.
The company has already received the in-principle Stage-I approval under the Forest (Conservation) Act, 1980 and Environmental Clearance (EC) for the mine, the company said, adding that the development of the mine was progressing fast and the Mining lease was likely to be executed in the current quarter.
The supplies of coal from this mine shall provide stability to the Company’s Integrated Steel operations as well as result in significant cost reductions. Additionally, this being a commercial mine, it shall also boost the revenue and the profitability through sale of coal in the open market.
