New Delhi, Apr 5 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today approved the expansion of Ashok Opencast Project mining of Central Coalfield Limited.
Briefing newsmen, Defence Minister Pranab Mukherjee said as per the approval the mines will increase its mining capacity from the present level of 1.5 Million Tonnes per year(MTY) to 6.5 MTY.
The expansion will entail an investment of Rs 471.66 crores.
An incremental completion cost of Rs 553.89 crores with the option of outsourcing of coal production, cola handling, transportation and departmental implementation of overburden removal (OBR) and coal handling plant (CHP), is envisaged.
Mr Mukherjee said for floating and approval of tenders and award of work for further expansion of the Project from 6.5 MTY to 10 MTY capacity 3.5 MTY had been envisaged under emergency coal production plan with reappropriation and rephasing of capital proposed for 6.5 mty project between major heads in tune with the requirement for an advanced additional capacity creation of 3.5 mty.
He said for flexibility in the implementation stage within the approved cost estimates to respond to improvement in technology and equipment which would result in improved profitability and productivity parameters.
The Defence Minister said by this expansion of this project, 6.5 MTY of F Grade coal would be produced and supplied to Rosa Thermal Power Station and other consumers in the country.
UNI/BKS LS RK2112