Steel Authority of India Ltd (SAIL) and Bharat Coking Coal Ltd (BCCL) have entered into a Memorandum of Understanding (MoU) to jointly develop and operate two coal blocks in West Bengal. The partnership is aimed at increasing domestic coking coal production and strengthening raw material availability for the Indian steel industry.

The agreement covers SAIL’s Indikatta Ramnagore coal block and BCCL’s East of Damagoria (Kalyaneshwari) coal block in West Bengal. Together, the two blocks have a combined Peak Rated Capacity (PRC) of 4 million tonnes per annum (MTPA).

As part of the proposed integrated mining arrangement, the companies will coordinate mining activities and overburden management across both blocks. The first phase of the project is estimated to contain around 79 million tonnes of extractable coal reserves.

Integrated Mining Plan

Under Phase I, mining operations will be undertaken at the Kalyaneshwari block, while the overburden generated from mining will be managed through dumping at the Ramnagore block. The operational arrangement is proposed to be reversed during Phase II, allowing the two blocks to be utilised as an integrated mining system.

The arrangement is intended to enable more coordinated utilisation of the coal resources available across the two blocks. By integrating mining and overburden management, the companies aim to support efficient resource utilisation while expanding domestic coking coal output.

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Supporting Domestic Coking Coal Supply

The partnership comes in the context of efforts to increase the availability of domestically produced coking coal, an important raw material for steel manufacturing. The proposed development of the two blocks is expected to contribute to the domestic supply chain and support the raw material requirements of the steel sector.

According to the companies’ statement, the initiative is also aligned with the government’s Aatmanirbhar Bharat vision, with greater utilisation of domestic coal resources forming part of the broader objective of strengthening domestic industrial supply chains.

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