Date:13/02/2006 URL: http://www.thehindubusinessline.com/2006/02/13/stories/2006021303290300.htm

Back BCCL to increase coking coal output — Investment plan firmed up

Badal Sanyal

Steps initiated for the development of a fast-track greenfield underground project at Kalyaneswari in West Bengal to produce two mt of `medium' coking coal and 3 mt of non-coking coal.

Dhanbad , Feb. 12

ENCOURAGED by the much-awaited turnaround during the first nine months of the current fiscal, Bharat Coking Coal Ltd (BCCL) has firmed up an investment plan to augment production of raw and washed coking coal.

Steps have been initiated for the development of a fast track greenfield underground project at Kalyaneswari in West Bengal to produce two million tonnes (mt) of `medium' coking coal and 3 mt of non-coking coal.

Action has also been initiated for amalgamating North & South Tisra so as to develop a 5 mt opencast mine.

Talking to Business Line here, the Chairman & MD of BCCL, Mr Partha Bhattacharjee, said that the company had turned around from a near-bankruptcy situation in less than two years, following implementation of a recovery scheme in 2004-05.

Successful turnaround: Being a terminally sick subsidiary of Coal India, BCCL has suffered consistent losses since its inception in 1972-73 aggregating about Rs 10,209 crore. It reported a profit of Rs 1.66 crore in the last quarter ended December, and expects to earn a record profit of about Rs 100 crore in the current year ended March, 2006.

He said the company had been able to achieve the turnaround because of a favourable coal market situation and successful implementation e-auction of coal.

To hire more earthmovers: He said steps were being taken to hire heavy earth-moving equipment for coal production from isolated patches. Global tenders had been floated for introduction of "powered support longwall face" technology at Moonidih on a risk/gain sharing basis.

A large part of the investment cost for technology and equipment to be deployed in the mine would be sourced from SAIL on attractive terms, he added. The tender, which is to be closed on February 26, is believed to have attracted three international companies, including one from China.

The work order is likely to be placed within three months of the closure of the tender, Mr Bhattacharjee said.

BCCL is the only company in the country producing medium grade and prime coking coal, usually consumed by steel plants.