ET reported that Steel Authority of India Limited will again call for quotations from mining contractors to develop a Greenfield coking coal mine in which it hopes to, for the first time, also outsource rehabilitation of local people as part of the mine development program.

The hunt for a mining contractor willing to run the 4 million tonne mine, coal washery and take on resettlement and rehabilitation of 3,500 families at the Tasra block, Jharkhand, at an affordable price has proven difficult.

This month when SAIL invites tenders for an MDO for the 117 million tonne Tasra block, it will be the fourth time, having failed in its last three attempts.

To attract increased response, SAIL is also considering offering washed coal rejects to the selected contractor for use in power generation. This proposal will however have to be first cleared by the SAIL board before the tender is announced.

The government had allocated the Tasra and Sitanala coal blocks in Jharkhand, to SAIL in 1996 and 2007 respectively. Official said that "What we have been allocated so far will not amount to more than 2 MT of washed coal. We've asked for three blocks in Jharkhand; Jhirki in East Bokaro coalfield, Rohne Routpara (West) and Routpura in North Karanpura coalfields.”

(Sourced from ET)