Bihar set to rejoin league of coal producing states

The coal ministry has started the auctioning of solitary coal block discovered in Kahalgaon area of Bhagalpur district.

Bihar will soon be back in the league of coal producing states, which it found itself out of in 2000 when Jharkhand was carved out of it.

A coal mine in Dhanbad. Bihar lost all its coal mines when Jharkhand was carved out of it in 2000. (HT)

The coal ministry has started the auctioning of solitary coal block discovered in Kahalgaon area of Bhagalpur district, an official familiar with the matter said.

State’s finance minister Vijay Kumar Chaudhary said that coal mining, which comes with environmental challenges, would add up to revenue of the state. “Mining of coal, once it starts, will also ease the issue of coal supply to thermal power stations and other industries in Bihar,” Chaudhary said, adding that the Centre should urgently and expeditiously undertake surveys and feasibility testing for mining of other minerals in the state.

A senior official of union coal ministry, who did not wish to be identified, said that the Centre had launched the auctioning process of Kahalgaon’s Mandar Parvat coal block, along with 140 other mines, in the biggest ever mining auction conducted by the country on November 3. “The mining is open for all, including the state agencies, private investors and foreign companies, as 100% foreign direct investment (FDI) has been allowed in the mining sector,” said the official, adding that the coal blocks are open for bidding for two months.

As per a study by the Coal Mine Planning and Design Institute Limited (CMPDIL), Ranchi-based central public sector enterprise (CPSE), Mandar Parvat block, spread over around 13.10 square kilometres of area, has a coal reserve of around 340 million tonnes. “It is part of Rajmahal coalfields of Jharkhand. We have carried out detailed exploration of the area for coal mining and assessed to be financially and technically feasible,” said a senior CPMDIL officer.

The coal block is also well connected with railway, national highway as well as waterways. “Nearest railway station is Kahalgaon, which is 10 km from the pithead, while NH-80 and major district road also pass through near the coal block. River Ganga, which has been developed for national waterways, is also 20-25 km away,” said the coal ministry official.

The exploration report says that as many as 13 villages like Bhalua Sujan, Karahara Basdeopur Milik, Bishunpur, Majhgaon, Semaria, Kairia Milik, Jangal Gopali, Sian, Lagma, Jethiana, Ratanpur Doem and Jagarnathpur Milik might have to face environmental issues if mining activities are carried out.