SAIL awards $3.7bn Tasra open cast project to Power Mech and PC Patel Infra

The consortium of Power Mech Projects and PC Patel Infra has been awarded a contract worth INR 30,438 crores from the Steel Authority of India Limited (SAIL) for the Tasra open cast project in Jharkhand. The mine development and operation (MOO) contract, which spans 28 years, promises to significantly boost India’s coal extraction capabilities.

The Tasra project, located in the Jharia Coal Fields in Dhanbad, eastern Jharkhand, involves extensive infrastructure development, including overburden removal, coking coal extraction, and the establishment of a 3.5 million tonnes per annum capacity coal washery. The project also includes the provision of steel-grade coking coal to SAIL, along with carrying out rehabilitation and resettlement activities.

The Tasra open cast project holds substantial coal extraction reserves totaling 96.78MT, with an annual capacity of 4MTPA. Over the course of the project, it will involve the removal of more than 535.29 million cubic meters of bulk material.

The consortium, led by infrastructure construction firm Power Mech Projects (holding a 74% stake), and mining services contractor PC Patel Infra (owning the remaining 26%), will form a special purpose vehicle (SPV) to execute the MOO of the Tasra project.

Power Mech Projects Chairman and Managing Director, Sajja Kishore Babu, stated, “This project will further strengthen our robust order book and enable the company to diversify its order book, which is in line with its strategy to have an optimum mix between power and non-power segments. This mine has all statutory approvals in place and it is a ready-to-mine project. The revenue booking can be started from FY24 onwards.”

The Tasra project represents the second MOO contract secured by Power Mech Projects, following the KBPMOO project in mid-2021.