Conventional Coal Mines… Page Under Development

On complaints of encroachments in LCDC leased area by an adjoining lease holder, LCDC Board directed the management to develop small coal mines along periphery of LCDC lease firstly to check any such encroachment and secondly to supply coal to thermal plant during trial run. For this purpose, a raising contractor was appointed by LCDC after competitive bidding. During trial operation of thermal plant, it was learnt that WAPDA had dropped the idea of setting up of remaining three units. It further transpired that installed units were also operating under capacity and mostly one unit and rarely two units were in operation at time This situation also wiped away the second prerequisite of mining quantity of 750,000 tonnes even for the installed 3 units and thus mechanized mining became un-economical. Under these circumstances it could also not be possible to arrange financing for the proposed mechanized mines.

LCDC Board considered the situation and decided to drop the ideal of setting up mechanized mines and advised the management to meet the coal requirement of installed units through local semi mechanized mines started through investment of already engaged contractor. Later, the area for second phase plants was retrieved from LCDC for allotment to private sector and the “Compact Block” was splitted in two parts thus also negating the plan of proposed mechanized mines, which was based on almost whole of Compact Block.

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