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Mining Industry

West Bengal is 3rd largest in India in mineral production accounting for about one-fifth of total mineral production. Coal accounts for 99% of extracted minerals of the state, which has 11% of the total national coal reserves.

Coal: In 2015, the state's total coal reserves/resources were estimated at 31.43 billion tonnes, major coal fields being at Raniganj, Barjora etc, while coal production reached 5.33 million tonnes during 2015-16 (April to June 2015).

Deocha-Pachami Coal Block: India's largest coal mine located in the south-western part of Birbhum Coalfield in West Bengal. Spread over approximately 10 sq km, in-place reserves of coal is estimated at 2,100 million tonnes with an investment potential of Rs. 20,000 crore (US$ 3 billion).

Locations:
  • Asansol-Raniganj, Durgapur in Burdwan district
  • North Western Purulia and Bankura District
  • Deocha-Pachami-Dewanganj-Harisingha area in Birbhum District

Grade:
  • Non-Coking Coal: grades ranging from G2 to G11
  • Coking coal: Steel Grade-l, Washery Grades II & Ill

The prospects of Coal Bed methane production potential from the Raniganj coal reserves are estimated at 12 million cu. Metres/ day that is a useful source of energy for the future.

Other minerals: Lot of other naturally occurring mineral sources such as Apatite, Wolframite, Kyanite, Decorative stones, Base Metal, Sand form a considerable chunk of the total mineral base of the state. New deposits of Sulphur and Silica have been unveiled, which has led to a spur in the overall production.

The mineral sources are uniformly distributed throughout West Bengal. Rock phosphates deposits are found in Beldhi, Chirugora and Kutni regions of Purulia district. Deposits of granite and kaolinite are found in Purulia, Bankura and Birbhum districts. Deposits of basalt-trap rocks used to prepare road metals are available in Birbhum district.

As per Govt. of India regulations, FDI up to 100% is allowed in exploration, mining, minerals processing and metallurgy under the automatic route for all non-fuel and non-atomic minerals including diamonds and precious stones. This holds a lot of promise for foreign investors to invest in West Bengal.

Investment Opportunity in the Industrial/Mining Sector:
Some of the promising investment opportunities in the sector could be as follows:

  • The state has been allotted 8 coal blocks out of which 6 are being developed through Public Private Participation (PPP) mode by West Bengal Mineral Development & Trading Corporation Ltd. (WBMTDC) and 2 by Damodar Valley Corporation (DVC).
  • Investment opportunities in mines explorations, undertaking mining operation, infrastructure in West Bengal
  • H-Energy (P) Ltd, energy arm of Hiranandani Group to setup up 4 mn. tons a year floating storage and re-gasification unit (FSRU) off Haldia coast, West Bengal
  • Unique, 200D-acre industrial township, known as Sujalaam the Skycity being set up at Andal, near Durgapur
  • Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC) to be aligned to the Eastern Dedicated Freight Corridor (EDFC), spanning across 20 cities in the seven states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal.
  • Two major ports at Kolkata and Haldia. 2 minor ports coming up at Tajpur-Shankarpur and Kulpi.

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