Indian conglomerate Lanco Infra has secured mine developer and operator (MDO) contract for Tasra coal block project with the state-owned company Steel Authority of India (SAIL).
The company has acquired the MDO contract through bidding process that also included Adani.
The coal mine located in Jharia coalfields of Jharkhand's Dhanbad district has reserves of nearly 100 million tons of coal, reported Dnaindia.com.
Commenting on the grant, Ministry of Steel joint secretary U P Singh stated the Lanco emerged as an ideal firm to develop the coal block through technical and commercial bids.
Lanco would produce 4 million tons of coking coal per year, and sell the produced commodity to SAIL, which will then pay it as per net present value of the coal, added Singh.
As against the surface rights requirement of 900.59 hectare, SAIL owns only 346.67 hectare. Lanco is said to be liable to acquire the remaining land besides outlining rehabilitation and resettlement plan for 3,500 people to be displaced due to the project.