MCL Revives Pre-Independence Underground Coal Mine In Odisha’s Talcher

Sambalpur: The Mahanadi Coalfields Limited (MCL) is all set to resume coal production from its Talcher underground colliery in Odisha’s Angul district.

Following amendment in the New Coal Distribution Policy (NCDP) by the Ministry of Coal, the MCL has issued a letter of acceptance (LOA) under Mine Developer-cum-Operator (MDO) mode to TMC Mineral Resources Private Limited.

The TMC Mineral Resources will revive coal mining at the Talcher underground (UG) mine which has an estimated reserve of 11 million tonne. With the commencement of operations and a gradual increase in production capacity, the mine is projected to reach a peak production level of 3.6 lakh tonne per annum from the fifth year of the project’s initiation.

The 95-year-old underground mine, developed using the Bord & Pillar method, traces its roots back to 1928 when it was started by the Madras and Southern Mahratta Railway (MSM Railway). After being under different owners, in 1992, the Talcher UG was finally transferred to MCL, which is now the largest coal producing subsidiary of Coal India.

A team of 18 subject expert officers from different departments of MCL worked in tandem with the Department of Contract Management, MCL, for over 10 months to plan and execute revival of Talcher UG through MDO mode.

Congratulating the team for the successful initiative, OP Singh, Chairman-cum-Managing Director, said, “We are committed to ensure availability of adequate quantity of coal to our diverse consumers and resumption of coal production from Talcher underground would contribute in a meaningful way.”

Reopening of Talcher UG mine would be a crucial milestone in revitalising coal production from underground in the region, aligned with the Centre’s efforts to encourage responsible coal mining and utilise the country’s natural resources efficiently.

This public-private partnership (PPP) between MCL and TMC Mineral Resources Private Limited, under a revenue-sharing model, promises to create a win-win situation, bolstering economic growth while ensuring sustainable mining practices for a better and greener tomorrow.

With almost zero direct investment in the 25-year arrangement, MCL aims at earning a revenue of Rs 111 crore, besides creating a job opportunity for hundreds of skilled youths of Talcher.