The Deocha Pachami coal block, located in the Birbhum district of West Bengal, will bring monumental change to India’s energy sector. Around 2 million tonnes of coal reserves have been found in this area which is Asia’s first and the world’s second-largest coal block. West Bengal Government decided to float the global tender for the Deocha Pachami that will coincide with the eighth edition of the Bengal Global Business Summit (BGBS). It will take place on February 5-6 in Kolkata. This project might get a peak investment of ₹35,000 crores which can increase
Details of Deocha Pachami tender
The Geological Survey of India (GIS) identified the Deocha Pachami Coal block as a significant resource that can increase the economy of the West Bengal state as well as the whole of India. Because of its size and quantity of reserved coal, the state government has floated a global tender seeking Expression of Interest (EOI) for a Mine Developer and Operator (MDO) to manage this project.
This block was allocated to the state government of West Bengal in 2018 by the central government. Since then, it has been around 12.31 square kilometres. The geological survey of India has been expecting that in this large area, 1,198 million tonnes of coal is reserved for which it might get a huge investment of ₹35,000 crores (approximately $4.2 billion).
However, the state government is planning to make partnerships with large-scale coal mining corporations, logistics firms, and tech firms for underground mining technologies. The Chief Minister, Mamata Banerjee, has also been trying to enhance the energy production and economic growth of the state by consistently focusing on the tender. It has been also estimated that around 1 lakh people will get benefits because there will be more employment.
Potential threats for the tender
Besides having a lot of potential, the Deocha Pachami coal block faces many challenges. The coal block is situated around 12.3 square kilometres and around 420 acres of areas are covered with basalt. It is identified that around 100-200 meters under the basalt layer the coal has been detected. A total of 142 million tonnes of basalt needs to be extracted to reach the coal reservations.
To solve this problem, the State Power Minister Aroop Biswas organised a meeting with Vidyut Unnayan Bhawan, a representative of Poland to discuss the mining of the basalt layer. In this meeting, the West Bengal Power Development Corporation Chairman PB Selim, the Power department secretary Santanu Bose and Poland’s representatives were present to discuss the topic. The collaboration with the Poland representatives has aimed to enhance the technical ability of the state for the better development of the coal block.
However, the basalt found in this coal block is known for high-quality basalt. This kind of basalt is mostly used in construction works such as roads, bridges and so on. Different agencies are showing interest in this basalt mining. Even some reports show that the state can earn more than ₹5,500 crores by auctioning the 420-acre basalt layered area.
However, before the project initiation allegations have been found against the state government of the acquisition of the land in Deocha Pachami. In the area where the coal reserve is detected there, tribal people have their houses, forests are located, and religious sites are also found with stone quarries. It has been alleged that the acquisition of land is unfair and the government does not follow proper norms or regulations.
The CM, Mamata Banerjee, held a meeting with other state members to address this allegation. After the meeting, she said that a considerably small number of people would be removed and everyone would be provided with compensation and a rehabilitation package to every landowner. Henceforth, the basalt mining process will start around mid-March this following year.
Environmental challenges and concerns
The Deocha Pachami block might bring some environmental challenges. Oftentimes to make a mining process successful, a vast amount of deforestation is required which might impact biodiversity and habitat losses. Water pollution levels might be increased and the state is already suffering from a groundwater problem that is affected by arsenic contamination.
The mining of basalt and coal can extract higher levels of greenhouse gases. This can make the climate change issue more critical. West Bengal is already suffering from rising sea levels in the UNESCO World Heritage site of Sundarbans, frequent weather events like severe cycles and so on. In this case, the mining process might impact the climate of the state.
Economic impact of the tender
The Deocha Pachami tender can bring considerable profit to the economic level of the state. It has been already estimated that around ₹35,000 crores of investment will be attracted. It will generate around 1 lakh new direct and indirect jobs. It will strengthen the energy sector, transportation sector, trade and so on.
As around 140 billion tonnes of basalt will be mined, this might be used in developing roads, power facilities, bridges and so on. This can enhance the connectivity of Birbhum district with neighbouring districts. That can ultimately enhance the regional economic growth of West Bengal.
Total Coal Reserves in India
Coal is found to be the backbone of the energy sector of India. Around 55% of total energy requirements have been met through coal reservation. In the year 2015, the total coal reserves in India were around 31.43 billion tonnes and the production of coal reached 5.33 million tonnes during the era of 2015 to 2016. However, around 55% to 60% of electricity has been generated from coal in India.
There are a total of 3 coal fields and locations in India. Jharkhand, Odisha, Chattishgarh, West Bengal, Madhya Pradesh and so are the main locations of the coalfield. However, the largest coal mine is located in the south-western part of Birbhum Coalfield. Asansol-Raniganj coal mine, North Western Purulia and Deocha-Pachami-Dewanganj-Harisingha area are the main coal mine areas in West Bengal.
In the coal reservation of India, West Bengal contributed around 11%. However, Jharkhand has a major contribution of around 26%, Odisha has 24%, Chattishgarh has 17% and Madhya Pradesh has around 8-10% contribution.
FAQ
What is the Deocha Pachami coal block, and where is it located?
The Deocha Pachami coal block is located in the Birbhum district of West Bengal. It is Asia’s first and the world’s second-largest coal block.
How much coal is estimated to be present in the Deocha Pachami coal block?
The coal block has an estimated 1,198 million tonnes of coal reserves.
What is the expected investment for the Deocha Pachami coal block project?
The project is expected to attract an investment of ₹35,000 crores (approximately $4.2 billion).
What challenges does the Deocha Pachami coal block face in terms of mining?
The coal block faces challenges due to the presence of a basalt layer over the coal reserves. A total of 142 million tonnes of basalt needs to be extracted to reach the coal reserves.
What are the environmental concerns associated with the Deocha Pachami coal block project?
Environmental concerns include deforestation, potential water pollution, and increased greenhouse gas emissions. Additionally, the state is already suffering from groundwater problems due to arsenic contamination.
How will the Deocha Pachami coal block project impact local communities?
The project is expected to generate around 1 lakh new direct and indirect jobs. Local communities will also benefit from improved infrastructure and facilities such as roads and bridges.
What steps are being taken to address land acquisition concerns and tribal displacement?
The Chief Minister, Mamata Banerjee, has addressed the land acquisition issue by assuring that a small number of people will be displaced, and they will be provided compensation and rehabilitation packages.
What role will foreign collaboration play in the development of the Deocha Pachami coal block?
The state is planning to make partnerships with large-scale coal mining corporations, logistics firms, and tech firms for underground mining technologies. Additionally, collaboration with Polish representatives is being explored to enhance technical capabilities.
How will the Deocha Pachami coal block contribute to West Bengal’s economy?
The coal block project is expected to attract ₹35,000 crores of investment, generate 1 lakh jobs, and strengthen sectors like energy, transportation, and trade. It will also improve regional connectivity and contribute to the overall economic growth of West Bengal.
What are the major coal reserves and coal fields in India, and how does Deocha Pachami fit into this landscape?
The major coal fields in India include Jharkhand, Odisha, Chhattisgarh, West Bengal, and Madhya Pradesh. West Bengal contributes around 11% of the national coal reserves, and the Deocha Pachami coal block is located in the Birbhum Coalfield, which is one of the major coal fields in the state.
