PROJECT REPORT FOR TAWA-II U/G EXPANSION MINE...

PROJECT REPORT FOR TAWA-II U/G EXPANSION MINE (JUNE 2016) CMPDI

PROJECT REPORT FOR TAWA-II U/G EXPANSION MINE

EXECUTIVE SUMMARY

1.0 INTRODUCTION

1.1 BACKGROUND OF EXPANSION PROJECT REPORT

Project Report for Tawa-II U/G Mine (Recast) was prepared by CMPDI,Nagpur in November 2003 and was approved by WCL Board in its 181st

meeting held on 17.03.2004 for a total capital investment of Rs. 36.4332crores including WDV of existing assets of Rs. 4.4464 crores and for a targetcapacity of 0.39 Mty.

A Draft Revised Project Report for Tawa-II U/G Mine was prepared by RI-IV,CMPDIL, Nagpur in November 2009. The Draft Revised Project Reportproposed to work Tawa-II U/G Mine by Bord and Pillar method and extractionby caving. The target capacity of the mine was envisaged as 0.75 Mty or2500 tpd out of which 0.39 Mty or 1300 tpd will be generated from 3 nos ofLHD districts (Approved P.R. target capacity) and 0.36 Mty or 1200 tpd fromone no. low height continuous miner district.

Meanwhile, as the criteria for completion is fulfilled, the proposal forcompletion of Tawa-II U/G Mine was approved by WCL Board in its 221 st

meeting held on 26-11-2009 for a total completion cost of Rs. 39.2724 crores,which is 107.79% of the sanctioned capital of Rs. 36.4332 crores.

The Draft Revised Project Report for Tawa-II U/G Mine was presented in thePlanning Committee Meeting on 16-01-2010 in Board room of WCL (HQ). Theplanning team from RI-IV, CMPDI presented the salient features of the DraftRevised Project Report for Tawa-II U/G Mine. The technical and financialparameters were discussed in the meeting. It was suggested by WCL thatas Completion Report for Tawa-II U/G Mine was approved on 26-11-2009by WCL Board, the final report should be prepared as an ExpansionProject Report for Tawa-II U/G Mine. Based on the observations / decisionstaken in the planning committee meeting of CMPDI (HQ) and WCL (HQ), theProject Report for Tawa-II U/G Expansion Mine has been prepared.

Project Report for Tawa-II U/G Expansion Mine prepared in February 2010was placed before the Technical Sub-Committee of WCL Board on 28-05-2010 in the Board Room of WCL (HQ), Nagpur. In Technical Sub-CommitteeMeeting, it was directed by the committee mainly to include MaintenanceService Rate (on MARC pattern) in Departmental Option as WCL has noexpertise in operating Continuous Miner departmentally. The committeedirected to incorporate the points discussed in the meeting and recommendedto submit the Expansion Project Report to WCL Board for consideration, onPartial Hiring of Equipment.

Job No. 4101895 Page - 1 Executive Summary


Accordingly, as per the directions of Technical Sub-Committee, theeconomics was re-worked and the Expansion Project Report for Tawa-II U/GMine was submitted to WCL in July 2010.

The Project Report for Tawa-II U/G Expansion Mine was approved byWCL Board (1st Stage Approval for the purposes of Environmental &Forestry Clearances) in its 227th meeting held on 11.10.2010 with LHDs -Departmental and Continuous Miner on Partial Hiring for an AdditionalCapital Investment of Rs. 89.1888 crores and for a target capacity of 0.75Mty. The Board accorded approval for entering into coal supplyagreement with prospective consumer on cost plus basis to yield 12%IRR at 85% target capacity. The Board also accorded approval forinitiating formalities regarding Global Bid for Introduction of ContinuousMiner Technology by Hiring of Equipment.

1.2 GLOBAL BID FOR INTRODUCTION OF C.M. TECHNOLOGY

1.2.1 Preparation of Global Bid Document

Standard Global Bid Document for Continuous Miner / Similar Equipment withContinuous Cutting Technology on Hiring Basis was prepared by CIL and wasduly approved by FDs in 99th FDs meet of CIL held on 28.02.2013. Further itwas advised that during floating of tender, Subsidiaries may amend / include /delete / modify any clause depending upon the mining condition / otherrequirements of the projects of the subsidiaries with the approval of theircompetent authority.

This Standard Global Bid Document for Continuous Miner / Similar Equipmentwith Continuous Cutting Technology on Hiring Basis was circulated in March2013.

Accordingly, General Manager (NT), WCL has requested CMPDI, RI-IV,Nagpur to customize “Global Bid Document for Continuous Miner / SimilarEquipment with Continuous Cutting Technology on Hiring Basis for Tawa-IIU/G Mine” on the same lines as per CIL Approved Standard Global BidDocument for Continuous Miner / Similar Equipment with Continuous CuttingTechnology on Hiring Basis.

Based on Standard Global Bid Document, Global Bid Document forContinuous Miner / Similar Equipment with Continuous Cutting Technology onHiring Basis for Tawa-II U/G Mine has been customized and submitted toWCL in May 2013.

After numerous meetings and discussions by tender committee, it wasrequested by G.M. (NT), WCL that "apart from escalating the hiring rate ofPinoura U/G Mine as per the approved escalation formula, estimation ondepartmental option may also be prepared by CMPDIL.



After taking into consideration of Wages & Benefits of Contractual Labour asper the recommendations of High Power Committee of Coal India Ltd, theEstimated Hiring Cost for deployment of Continuous Cutting Technology inTawa-II U/G Mine was arrived to and was Rs. 1371=00 in December 2014which was conveyed to GM (NT), WCL and the same was accepted byTender Committee.

Taking into consideration, the above hiring rate and the variations assuggested by the tender committee, the Global Bid Document for ContinuousMiner / Similar Equipment with Continuous Cutting Technology on HiringBasis for Tawa-II U/G Mine has been customized and submitted to WCL inDecember 2014.

1.2.2 Approval of Global Bid Document

The Global Bid Document for Continuous Miner / Similar Equipment withContinuous Cutting Technology on Hiring Basis for Tawa-II U/G Mine wasplaced before WCL Board for its approval.

WCL Board after detailed deliberation, approved the following in its 260 th

meeting of the Board of Directors of WCL held on 10.01.2015:

a) Estimated Cost of Rs. 419,52,60,000/- for producing 3.06 Mt coal atthe rate of Rs. 1371/- tonne during a period of 9 years amountingto total hiring value of Rs. 471,37,94,136 (Rupees four hundredseventy one crore thirty seven lakh ninety four thousand onehundred and thirty six only) including service tax.

b) Deviations / Modifications in the Standard Global Bid Documentas brought out in the agenda note.

1.2.3 Tender Notice of Global Bid Document

After the approval of Global Bid Document for Continuous Miner / SimilarEquipment with Continuous Cutting Technology on Hiring Basis for Tawa-IIU/G Mine by WCL Board, Tendering of Global Bid Document was done byWCL on 02.03.2015. In the extension notice, WCL has kept the sale of tenderdocument upto 08.07.2015, the date of receipt of tender upto 09.07.2015 till3.00 P.M. and date of opening of tender as 09.07.2015 at 3.30 P.M.

1.2.4 Scrutiny of Tender Document

Three bidders namely M/s AMR India Limited, Hyderabad, M/s SMSInfrastructure Ltd., Nagpur and M/s JMS Mining Services Pvt. Ltd., Kolkatahad participated in the tendering.

The Part-I of the Tender Document as received by General Manager (NT),WCL from CMC Department of WCL was sent to CMPDI, RI-IV, Nagpur inAugust 2015 for further technical scrutiny.



The Technical Scrutiny of Part-I of the Tender Document of Tawa-II U/G Minewith Continuous Miner / Similar Equipment with Continuous CuttingTechnology on Hiring Basis was done by CMPDI, RI-IV and the observationswere submitted to WCL on 07.10.2015.

The Commercial Scrutiny of Part-I of the Tender Document of Tawa-II U/GMine with Continuous Miner / Similar Equipment with Continuous CuttingTechnology on Hiring Basis was done by CMC department of WCL.

1.2.5 Clarifications on Submitted Tender Document

The observations on the technical scrutiny were sent by WCL to M/s AMRIndia Limited, Hyderabad and M/s SMS Infrastructure Ltd., Nagpur. Both theparties have responded to the observations given by WCL / CMPDIL.

M/s AMR India Limited, Hyderabad in their letter dated 05.03.2016 clarified bygiving point wise reply on Commercial Part as well as Technical Part agreeingto all the observations put forth by WCL on Commercial Part and by CMPDILon Technical Part.

M/s SMS Infrastructure Ltd., Nagpur in their letter dated 14.03.2016 clarifiedby giving point wise reply on Commercial Part as well as Technical Partagreeing on some issues and dis-agreeing on some issues in the technicalpart. On certain observations, they have asked for some time limit of threeweeks as the matter has to be referred to their overseas equipmentmanufacturer.

1.2.6 Detailed Evaluation of Technical Part

The point wise reply and the clarifications sent by M/s AMR India Limited,Hyderabad and M/s SMS Infrastructure Ltd., Nagpur have been forwarded byG.M. (CMC), WCL on 16.03.2016 to CMPDIL, RI-IV, Nagpur for their detailedevaluation of technical part for further discussion / deliberation by T.C.Members.

The evaluation of technical part on the received clarifications sought andreceived from M/s AMR India Limited, Hyderabad and M/s SMS InfrastructureLtd., Nagpur has been done by CMPDIL, RI-IV and submitted to WCL on21.03.2016 asking G.M. (CMC), WCL to deliberate the observations by theTender Committee.

1.2.7 Opening of Part-II (Price Bid)

General Manager (CMC), WCL vide his letter dated 29.04.2016 informedR.D., RI-IV, CMPDI that Part-II (Price Bid) will be opened on 02.05.2016 at4.00 P.M. in the chamber of Director (Tech.) (P&P), WCL and requested toattend the opening of Part-II (Price Bid) on the said date and time.



The Part-II (Price Bid) of the single qualified bidder M/s AMR India Ltd.,Hyderabad for the said tender was opened on the above said date and time.As informed by G.M. (CMC), WCL, the quoted specific price per tonne ofcoal production (excluding service tax and cess on service tax) receivedis Rs. 1489/Tonne.

1.3 UPDATION OF EXPANSION PROJECT REPORT OF TAWA-II U/G MINE

G.M. (CMC), WCL vide his letters on 09.05.2016 and 17.05.2016 requestedG.M. (P&P), WCL to submit the following for further deliberation in TenderCommittee.

i) Total costing of coal per tonne.ii) Grade of coal & its notified priceiii) Recent awarded rate of similar nature of work of any subsidiary of CIL,

if any

General Manager (P&P), WCL vide his letter NGP/WCL/GM(P&P)/221 dated17.05.2016 requested R.D., RI-IV to get the updation of Expansion ProjectReport for Tawa-II U/G Mine done considering the quoted price on totalproduction and incremental production basis.

2.0 MARKETABILITY & JUSTIFICATION

The following table shows the demand for coal including middlings, from thevarious Existing, Completed, On-going, and Future Projects of WCL:

Sl.No.

ParticularsCoal Demand Projections (Mt)

2016-17 2017-18 2018-19 2019-20

1 Demand of Coal from the WCL Mines 69.28 70.08 70.58 70.58

The coal production from WCL is 40 - 45 Mt per annum since last many yearsand WCL is gearing up to increase the production upto 60 Mt by 2019-20.

To achieve the projected 60 Mt per annum production, new mines have to beopened by WCL or the operating mines have to be expanded in order to meetthe ever increasing demand. The following table shows the coal productionfrom the mines of WCL upto 2019-20 from the various Existing, Completed,On-going, and Future Projects:

Sl.No.

ParticularsCoal Production Projections (Mt)

2016-17 2017-18 2018-19 2019-201 Existing Mines 0.25 0.25 0.20 0.202 Completed Projects 15.38 12.39 10.20 10.153 On-going Projects 22.27 21.10 25.67 28.054 Future Projects 10.10 16.26 18.93 21.60



5 Total 48.00 50.00 55.00 60.00

Thus, the deficit in availability of coal from the various existing, completed, on-going and future projects of WCL is as follows:

Sl.No.

ParticularsSurplus / Deficit Projections (Mt)

2016-17 2017-18 2018-19 2019-201 Demand of Coal 69.28 70.08 70.58 70.582 Availability of Coal 48.00 50.00 55.00 60.003 Surplus (+) / Deficit (-) (-) 21.28 (-) 20.08 (-) 15.58 (-) 10.58

From the above tables, it is clear that the deficit in availability of coal includingmiddlings from the various existing, completed, on-going and future projectsof WCL will be 21.28 Mt in 2016-17. This gap between demand and supply ofcoal will be narrowed to about 10.58 Mt in 2019-20 provided all the futureprojects are opened as per schedule.

The additional production from Tawa-II U/G Mine will bridge the gap to theextent of planned production and thus there will be an augmentation inunderground production. Therefore in view of deficit in supply of coal, there isno problem in marketing of coal and expansion of Tawa-II U/G Mine is thusjustified.

3.0 EXISTING STATUS OF MINE

Tawa-II U/G Mine was planned to extract coal from Lower Workable Seamand Bagdona Seam only. The mine was to be operated on semi-mechanisedBord and Pillar method with caving by deploying low height SDLs as loadingequipment. Low height SDLs were suggested in view of the average seamgradient being of the order of 1 in 6, seam thickness in the range of 1.5m to2.3m and availability of loading machines in Pathakhera Mine-I.

Tawa-II U/G Mine was opened with 2 inclines and an airshaft driven fromsurface to touch Lower Workable Seam. Reverse dipping drifts wereproposed to be driven from Lower Workable Seam to Bagdona Seam tominimize stone work and create access to work Bagdona Seam. Tawa-II U/GMine has started production of coal from 2006-07. The coal till date has beengenerated from development workings in Lower Workable Seam only.Presently the mine is producing around 1700 tpd with 9 no. of LHDs. Thecoal production is being generated with LHDs and belt conveyor combinationwith drilling by UDMs and coal preparation by Blasting-off-Solids. Roofsupport is primarily roof bolting with cement grouting of bolts.

a) Seams being worked & Mine Development

Coal production is being generated from Lower Workable Seam onlyfrom 2006-07. Bagdona Seam is another Workable Seam in the minearea and is yet to be tapped. Lower Workable Seam is beingdeveloped by Semi-Mechanised Bord and Pillar Method.



b) Mine Entries with brief details

Two inclines were driven from surface to touch Lower Workable CoalSeam. The length of both the inclines (Incline No. 1 for Belt and InclineNo. 2 for Haulage) is 325m. Sinking of Return Airshaft upto LowerWorkable Seam is completed and the depth of airshaft is 70m. Thereturn airshaft is commissioned and ventilation connections areestablished. Reverse dipping drifts are being driven from LowerWorkable Seam to enter into Bagdona Seam for creating access towork Bagdona Seam.

c) Method of Work

The method of work presently being followed in Tawa-II U/G Mine isSemi-Mechanised Bord & Pillar Method with Blasting-off-Solids.Presently development is being done in the mine by LHDs anddepillaring is yet to start.

d) Production Performance of Tawa-II U/G Mine

Presently Tawa-II U/G Mine is an operating mine (Completed Project),which has started production from 2006-07. The coal production hasbeen generated from development workings in Lower Workable Seamonly by LHDs. The details of Production, Productivity, Cost ofProduction, Sale Price and Profit of Tawa-II U/G Mine since inceptionof the mine are given in the following table:

Year Production(Mt)

O.M.S.(t)

Cost ofProduction (Rs./t)

Sale Price(Rs./t)

Profit(Rs./t)

Profit (Rs. Crores)

2006-07 0.103 3.04 604.02 797.17 193.15 1.992007-08 0.188 2.96 771.48 1298.42 526.94 9.902008-09 0.234 2.33 960.36 1329.73 369.38 8.652009-10 0.330 2.44 1122.35 1425.85 303.50 10.022010-11 0.362 2.61 1239.34 1553.55 314.21 11.732011-12 0.413 2.46 1790.69 1973.03 182.34 7.522012-13 0.435 2.39 1898.66 2094.66 196.00 8.532013-14 0.531 2.39 1971.90 2186.17 214.27 11.392014-15 0.522 2.09 2237.42 2287.48 50.06 2.612015-16 0.500 1.92 2308.42 2313.87 5.45 0.27

e) Coal Evacuation System & Despatch Arrangement

The coal produced from Lower Workable Seam is transported tosurface through a network of belt conveyors. The trunk belt conveyorlaid in the belt incline has been extended on surface in the samegradient discharging coal directly onto twin pocketed 2 x 100t overheadhoppers for loading onto trucks.



f) Ventilation Arrangement

Presently the main mechanical ventilator is installed in Return Airshaftwhich is acting as a return airway. PV-300 fan is in operation in themine. 7 nos. of auxiliary fans are in operation to maintain the airvelocity at the working places.

g) Existing Manpower

Existing manpower as on 01.04.2016 as per mine cost sheet is 1045.

h) Approach Road

Approach road to Tawa-II U/G Mine is constructed from PathakheraCGM Office up to the mine. The length of road from Tawa-I U/G Minediversion to Tawa-II U/G Mine is 5.5 km and is constructed. A HighLevel Bridge (200m x 11.5m) across Tawa River is also constructedwhich is used as an approach to Tawa-II U/G Mine.

i) Power Supply Arrangement

The power supply arrangement to Tawa-II U/G Mine is presently onpermanent basis. Incoming 33 kV power supply arrangement fromSarni MPPGCL substation (near the Sarni dam) to the Tawa-II U/GMine is already completed and in operation.

j) Civil Works : Service & Residential Buildings

Residential Buildings have not been proposed in the approved ProjectReport for Tawa-II U/G Mine as the existing quarters of PathakheraMine-I was proposed to be utilized for Tawa-II U/G Mine. Servicebuildings like Manager Office, Cap Lamp Room, Unit Stores andTemporary Unit Workshop etc have been constructed.

k) Land Acquisition Status

The total land involved in this project is 523.75 ha, out of which theland for mining area is 520.00 ha and 3.75 ha forest land is for erecting33 kV power line, which has been acquired under Surface Rights. Theentire mine area (520.00 ha) is acquired under Mining Rights underCBA 1957. Out of this 520 ha, 396.279 ha comes under forestland andrest 123.721 ha land belongs to others. Out of 396.279 ha forestland,195.20 ha is cleared under FCA, 1980 and remaining 201.079 ha isapplied for forestry clearance.

l) Completion Cost as per Approved Completion Report

WCL board in its 221st meeting held on 26.11.2009 approved theCompletion Report of Tawa-II U/G Mine of Pathakhera Area andaccorded approval for a total completion cost of Rs. 39.2724 Crores.



4.0 PROJECT SITE INFORMATION

Tawa–II U/G Expansion Mine is located in Tawa Extension Geological Blockin the N-E part of Pathakhera Coalfield, Betul District, Madhya Pradesh andlies to N.E. of the existing mines across the Tawa River. The area is coveredby Survey of India Toposheet No. 55 J/4 and lies between Latitudes 220 08' Nand 200 10' N and Longitudes 780 10' E and 780 12' E.

The distance of Tawa Extension Geological Block from Ghoradongri RailwayStation is about 25 km. The nearest rail head is Ghoradongri on New Delhi –Chennai trunk route of Central railway and is situated at a distance of about71 km south of Itarsi Junction. The distance between Satpura Thermal PowerStation, Sarni and Tawa Extension Geological Block is about 7 – 8 km and itis connected to Ghoradongri Railway Station by an all weather tar road. Arailway line connecting Ghoradongri to the MPSEB railway siding passesthrough the southern part of the coalfield. The area within the block istraversed by seasonal forest roads, which connects to Gandhigram andShaktigarh villages lying to the north of block.

The southern and eastern part of the block is hilly and rugged with thick forestcover whereas the northern and north western regions are comparatively flat.The general elevation in the block varies from 414.96 m above mean sealevel in the SW part to 531.80 m above mean sea level in the NE part.

The Tawa River flowing to the west and south of the block controls thedrainage of the area. Few seasonal nallahs originating from Bagdev Pahadand other elevated regions discharge into Tawa River which flows in westerlydirection.

Satpura Dam has been built across the Tawa River to store water for SatpuraThermal Power Station, Sarni as well as to regulate the flow of water in thedown stream of Tawa River. The entire water requirement to the townships ofSTPS and WCL is also met from this reservoir. The extended full reservoirlevel is 436.78 m (1433 ft).

The total area of the Tawa Extension Geological Block is about 8.5 km2. Themine area of Tawa-II U/G Expansion Mine is about 5.20 km2.

5.0 GEOLOGY AND DEPOSIT APPRAISAL

The Geology of the proposed Project Report for Tawa-II U/G Expansion Mineis based on “Geological Report for Coal Exploration in Tawa Extension Block,Pathakhera Coalfield, Distt. Betul (MP), CMPDI (RI-IV), Nagpur, December1999”, “Report on Magnetic Survey for Delineation of Igneous Intrusives inTawa-II U/G Mine, CMPDI, July 2009” and “Latest mine data”.

The total area of the geological block is 8.50 km2.



5.1 DENSITY OF BOREHOLES

Total 124 boreholes were drilled in an area of about 8.50 km2 and theBorehole density works out to 14 BH/ km2.

5.2 GEOLOGY OF THE MINING BLOCK

The lease hold area of the proposed Tawa–II U/G Mine is generally a hillyterrain. Barakar sandstones are exposed in the southern and eastern part ofthe block. The likely exposures of the coal seams, to the south-east, are nowsubmerged in Satpura Reservoir. The lithological formations summarized onthe basis of borehole data have been furnished in following table:

Age Formation LithologyRecorded Thickness rangeMinimum Maximum

RecentAlluvium/

SoilSandy and clayey soil.

0.70(CMPTE-113)

15.45 (CMPTE-19A)

UpperCretaceous

Intrusives Dolerite dykes

LowerPermian

MoturMedium to coarse grainedsandstone with bands ofvariegated clays.

NIL225.34

(CMPTE-140)

UpperBarakar

Medium to coarse grainedsandstone, devoid of any coalseam.

5.61(CMPTE-121)

121.60(CMPTE-141)

MiddleBarakar

Medium grained sandstonewith coal seam, carb. shalebands, shale & intercalations.

105.10(CMPTE – 8)

122.70(CMPTE-118)

LowerBarakar

Fine grained garnetiferoussandstone with few thin shaleand coal bands.

Partly encountered

5.3 STRUCTURE OF THE BLOCK

Tawa–II U/G mining area is characterized by rugged topography dissected bynumerous nalla cuttings. Generally the sandstones are massive and it is notpossible to determine the strike and dip. However, at places the strata isfound to exhibit a NE – SW trend dipping towards NW at an angle varyingfrom 50 – 150.

5.3.1 Strike and Dip

The general trend of the formation in the area is NE – SW dipping towardsNW at a gradient of 1 in 8.5 to 1 in 10.5 i.e., 50 to 70 dip. However, in theNorth – Eastern part the strata exhibits a slightly steeper gradient of 1 in 6 i.e.,about 90 dip.

5.3.2 Faults



Based on the sub-surface data obtained from the boreholes, 9 no. of faultshave been interpreted in the mine area with a throw of 5m to 150m. Apartfrom above, minor faults and slips of throws less than 5m cannot be ruled out.

Similarly the throw of faults as deciphered may be the cumulative throw ofmore than one fault of lesser magnitude.

5.3.3 Intrusives

Dolerite dyke has been encountered in several boreholes. Possibility ofpresence of some other dykes cannot be ruled out. No heat effect, however,has been noticed from the coal cores of this Block except in two boreholes.

5.4 COAL SEAMS

Presence of four coal seams i.e., Upper Workable Seam (UWS), LowerWorkable Seam (LWS), Bagdona Seam, and Seam IA have been establishedby drilling in Tawa-II U/G Mine. The variation in thickness of different seamsand their intervening parting as encountered in different boreholes has beenfurnished in the following table:

SeamThickness Range (m)

RemarksMinimum Maximum

U. W.S. 0.18 1.62 Not considered for exploitation.Parting 7.70 19.51 Predominantly composed of sandstone.L.W.S. 1.34 3.34 Workable over the entire mining area.

Parting 42.04 63.59Consists of intercalations of shale and sandstonewith 3 – 4 thin coal bands.

Bagdona 0.92 2.22 Workable in nearly entire mining area.Parting 28.85 50.45 Consists mainly sandstone with shale in upper part.

IA Seam 0.45 2.02 Not considered for exploitation.Parting 0.52 6.69

IB Seam0.36 1.25 Splinter seam occurring below Seam- IA extends

over limited area and it is unworkable.

The Upper Workable Seam, apart from its reduced thickness, has becomehighly interbanded in nature in Tawa–II U/G mining area. A number of carb.shale and grey shale bands have developed in the seam reducing the coalportion to thin bands. This seam has attained thickness of 0.90 m and aboveonly in patches. The lowermost correlatable Seam IA has attained workablethickness of (+) 1.50 m in one borehole. The splinter Seam IB occurring belowSeam IA offers even lesser potential.

5.5 GEOLOGICAL BOUNDARY & RESERVES

5.5.1 GEOLOGICAL BLOCK BOUNDARY

The Tawa Extension Geological Block is limited by the following boundaries:

i) Fault F1 3 - F13 and North & Western bank of Satpura Reservoir andseam sub-crops in East.



ii) Arbitrary line 200m from the peripheral boreholes in the West andEastern Bank of Tawa River in the South West.

iii) The Northern Bank of Satpura Reservoir and Fault F13 - F13 in the SouthEast and South.

iv) Fault F1 - F1 in the North.

5.5.2 GEOLOGICAL RESERVES

T h e Seamwise, Gradewise Net Proved Geological Reserves of WorkableSeams (Thickness range + 1.50m) is given in the following table:

SeamSeam & Grade-wise Proved Geo. Reserves (Mt) Total

(Mt)B C D EL.ower Workable Seam - 1.199 12.910 2.958 17.067Bagdona Seam 0.380 6.686 2.268 0.106 9.440Total 0.380 7.885 15.178 3.064 26.507

5.6 OVERALL QUALITY

The quality parameters of the workable seams are given in the following table:

Coal seam Quality ParametersMoisture

%Ash % UHV with

Grade(k. Cal/kg)

GCV with Grade(k. Cal/kg)

(Calculated)Lower Workable Seam 1.8 31.90 4250 'D' 5005 ‘G8’Bagdona Seam 1.8 28.02 4785 'D' 5370 ‘G7’Overall 1.8 30.59 4430 'D' 5130 ‘G8’

6.0 MINE BOUNDARY, RESERVES, PRODUCTION TARGET & MINE LIFE

6.1 PARTICULARS OF COAL SEAMS

The sequence of coal seams along with their thickness, parting, depth andgrade of the seams as per the Tawa Extension Geological Report are shownin the following table:

SeamSection /Parting

Thickness range(m)

General Depthrange (m)

Grade Remarks

U.W.S. 0.18 – 1.62 19.41 - 299.92 G – D Not considered for mining

Parting 7.70 – 19.51 - - -

L.W.S. 1.34 – 3.34 34.13 – 314.90 F – C Considered for mining

Parting 42.04 – 63.59 - - -

BagdonaSeam

0.92 – 2.22 14.25 – 372.63 E – B Considered for mining

Parting 28.85 – 50.45 - - -



IA Seam 0.45 – 2.02 48.67 – 351.30 F – B Not considered for mining

Parting 0.52 – 6.69 - - -

IB Seam 0.36 – 1.25 - - Splinter Seam and notconsidered for mining

From the above table it is observed that Lower Workable Seam is thepotential seam in the mining area as regards to thickness and aerial extent.Bagdona Seam has developed in part of the mine area with averagethickness of 1.75m.

The better quality coal is available in Bagdona Seam. In Tawa ExtensionBlock, Upper Workable Seam and IA Seam have not developed workablethickness in most of the area and hence not been considered for mining inTawa-II U/G Mine area. Only Lower Workable Seam and Bagdona Seamhave been considered for mining in Tawa-II U/G Mine.

6.2 PARTICULARS OF WORKABLE SECTORS

Considering the potentiality of seams and fault pattern, the block has beendivided into 10 sectors. Of these ten sectors, it is proposed to mine coal inTawa-II U/G Mine from three sectors only. The limits of the geological sectorsand the reasons for their selection and omission from the limits of Tawa-II U/GMine are explained in the main text of the project report.

6.3 MINE BOUNDARY

The area of Tawa-II U/G Expansion Mine is about 5.20 Km2. Only two seamsnamely Lower Workable Seam and Bagdona Seam in Sector-IA, II and IIIAhave been considered for mining in Tawa-II U/G Expansion Mine. The mineboundary is as below:

North: Dyke, Fault F3 - F3 and Fault F1 - F1

South: Fault F7 - F7

East: Fault F7 - F7, Fault F13 - F13/Subcrop of seam, Fault F12 - F12 andFault F2 - F2

West: Eastern Bank of Tawa River and 200m arbitrary line fromperipheral boreholes CMPTE-73 & CMPTE-74.

6.4 GEOLOGICAL, MINEABLE & EXTRACTABLE RESERVES

The following table shows the workable seam wise Geological reserves,Geological losses, Mineable reserves, Mining losses and Extractable reserves(> 1.5m thickness) considered in Tawa-II U/G Mine:

Coal Seam NetGeologicalReserves

(Mt)

GeologicalLosses

(Mt)

MineableReserves

(Mt)

MiningLosses

(Mt)

ExtractableReserves

(Mt)

Balance Extr.Reserves ason 1.4.2016

(Mt)



L.W.S. 17.067 4.385 12.682 5.104 7.578 3.959

Bagdona 9.440 2.395 7.045 3.500 3.545 3.545

Total 26.507 6.780 19.727 8.604 11.123 7.504

The geological losses are on account of barriers against faults, odd shapedareas, inaccessible places and 15m safety barrier against Tawa River. Out ofthe geological reserves of 26.507 Mt, the geological losses are to the tune of6.780 Mt and therefore the mineable reserves work out to 19.727 Mt.

The mining losses are on account of panel barriers, safety barrier againstsurface features, protective pillars against mine entries, sub-panelisation, ribsin pillars in LWS and Bagdona Seam. Out of mineable reserves of 19.727 Mt,the mining losses are to the tune of 8.604 Mt and therefore the extractablereserves works out to 11.123 Mt. Tawa-II U/G Mine has started productionfrom 2006-07 and till 01.04.2016, the mine has produced about 3.619 Mt.Therefore, the balance extractable reserves as on 01.04.2016 work out to7.504 Mt.

6.5 PRODUCTION TARGET AND BALANCE LIFE OF THE MINE

It is proposed in this report that three LHD districts and one Continuous Minerdistrict to be operated simultaneously in Lower Workable Seam and BagdonaSeam. The approved project report has suggested a target capacity of 1300tpd or 0.39 Mty by operating 3 LHD districts but the mine has already startedproducing 0.50 Mty consistently since past three years. In addition to theabove, it is proposed in this report to introduce a Continuous Miner District,which will produce 1200 tpd or 0.36 Mty. Therefore the total productioncapacity of Tawa-II U/G Expansion Mine (3 LHD districts & 1 C.M. Districtcombined) has been envisaged as 0.50 Mty + 0.36 Mty = 0.86 Mty.

The nominal production capacity of the mine shall be 0.86 Mty. During certainyears, when there will be depillaring in all the districts and favourable geo-mining conditions are encountered while mining, the peak production capacityof about 1.075 Mty may be achieved.

The balance extractable reserves in the proposed mine area has beenestimated as 7.504 Mt. With a target capacity of 0.86 Mty, the revenue life ofthe mine works out to 13 years.

7.0 MINE ENTRIES

7.1 EXISTING MINE ENTRIES

The details and purpose of the existing mine entries are tabulated below:

Sl.No.

Entry Length/Depth (m)

X-section(m x m)

Gradient Purpose

1. Incline No.1 325 4.8 x 2.8 1 in 4.5 Coal raising, intake airway& Travelling Route



2. Incline No.2 325 4.8 x 2.8 1 in 4.5 Material supply and intakeairway

3. Airshaft 70 4.5m dia. Vertical Return airway

Presently, Incline No.1 and Incline No. 2 are already driven and the airshaft issunk. Incline No.1 is used for coal raising, intake and traveling roadway andIncline No. 2 is used for material supply and intake airway. The airshaft isused as a return airway presently.

7.2 PROPOSED MINE ENTRY

The dimension of both the inclines is not sufficient to cater to the ventilationrequirement of about 210 m3/sec to produce 0.86 Mty. For this purpose, inaddition to the existing intake inclines, it is proposed to sink an intake airshaftto cater to the ventilation requirements of the mine after expansion. The depthand diameter of the proposed airshaft would be about 70m and 4.5mrespectively. The location of proposed airshaft is tentative and may changedepending upon the actual site condition. Therefore, on commissioning ofventilation arrangement in the existing return airshaft and sinking of proposedairshaft, the mine will have three intakes and one return airshaft.

7.3 DRIFTS FOR ENTRY TO BAGDONA SEAM

Three nos. of reverse dipping drifts were proposed in the sanctioned projectreport to be driven from Lower Workable Seam to tap Bagdona Seam fromnear the touching point of the inclines. Reverse dipping drifts were preferredto tap Bagdona Seam in view of the thick parting of 45 - 55 m and seamgradient (1 in 6 to 8.5) to minimize the stone work and create access to thelower seam with minimum capital expenditure. The drifts were proposed onthe rise side as minimum coal in main trunk roadways in Bagdona Seamwould be sterilized at the end of mine life since extraction is proposed bycaving. The length of the proposed 3 nos. drifts in the sanctioned report was240m, 176m and 140m at a gradient of 1 in 4.5, 1 in 4 and 1 in 3 respectivelyand with a cross-section of 4.8m x 3.0m.

Presently Bagdona Seam is still virgin and the proposed reverse dipping driftsare being driven. As there is a change in the location and alignment ofinclines, there is also a change in the alignment of the main trunk roadways inLower Workable Seam.

Therefore, a fresh section has been prepared along the changed main trunkroadways in Lower Workable Seam and Bagdona Seam. The details of thereverse drifts from Lower Workable Seam to Bagdona Seam proposed in thisexpansion project report are tabulated below:

Sl.No.

Entry Length/depth (m)

X-section(m x m)

Gradient Purpose

1. D-1 194 4.8 x 3.0 1 in 4.5 Coal raising, intake airway& Travelling Route



2. D-2 141 4.8 x 30 1 in 4 Material supply and intakeairway

3. D-3a 111 4.8 x 3.0 1 in 3 Return airway4. D-3b 111 4.8 x 3.0 1 in 3 Return airway

Drift D-1 will start from the top of strata bunker in Lower Workable Seam andwill end at the floor of Bagdona Seam. Remaining drifts will start from thefloor of Lower Workable Seam and will end at the floor of Bagdona Seam. Forthe ventilation considerations only, two intake drifts and two return drifts areproposed in this report to enter Bagdona Seam from Lower Workable Seam.The Lengths of the proposed drifts could vary depending upon the actual FRLvalues encountered. Thus at the time of drivage of the above drifts, a sectionshould be drawn to firm up the starting and ending position of the drifts so asto arrive at actual length of the drifts.

As financial provision of 3 reverse drifts from L.W.S. to Bagdona Seam hasbeen kept in the approved project report for target capacity of 0.39 Mty,presently only financial provision of 4th drift for an additional return airway hasbeen kept in this expansion project report.

7.4 DRIFTS FOR ENTRY TO VARIOUS SECTORS

Underground drifts for entry into various sectors catering to the coal raising,material supply and ventilation requirements of the mine in Bagdona Seam(details mentioned in Appendix A.8.1) have been proposed in this report. Thelengths could vary depending upon the actual floor RL values encounteredand at the time of drivage of the drifts, a section should be drawn to firm upthe starting and ending position of the drifts so as to arrive at actual length ofthe drifts.

8.0 GEO-MINING PARAMETERS AND MINING STRATEGY

8.1 The following table gives a brief description of the Geo-mining Parameters ofthe workable seams:

Sl.No.

ParticularsCharacteristics of Workable Seams

L.W.S. Bagdona Seam1. Block Area (km2) 8.50 8.502. Mining Area km2) 5.20 5.203. No. of Borehole intersections in Block Area 124 1154. No. of Borehole intersections in Mining Area 79 795. Borehole Density in Block Area (B.H./ km2 ) 14 146. Borehole Density in Mining Area (B.H./ km2) 15 157. Seam thickness range in Block Area (m) 1.34 – 3.34 0.90 – 2.908. Seam thickness range in Mining Area (m) 1.34 – 3.34 0.92 – 2.229. Workable thickness range (m) 1.50 – 3.34 1.50 – 2.2210. Average mining thickness (m) 2.30 1.7511. Seam gradient 1 in 6 to 1 in 8.5 1 in 6 to 1 in 8.512. Depth of cover range in Block Area (m) 14.00 – 262.00 14.00 – 262.00



13. Depth of cover range in Mining Area (m) 40.00 – 262.00 40.00 – 262.0014. Range of parting with upper seam (m) 7.70 – 19.51 42.04 – 63.5915. Average Grade of Coal in Mine Area G8 G7

Sl.No.

ParticularsCharacteristics of Workable Seams

L.W.S. Bagdona Seam16. Degree of Gassiness Deg-II Deg-II17. Immediate roof Sandstone Shale & Sandstone

18. Immediate floorAlternate bands ofShale & Sandstone

Alternate bands ofShale & Sandstone

19.Proved Net-Insitu Geological Reserves(+1.5m thickness) (Mt)

17.067 9.440

20. Extractable Reserves (Mt) 7.578 3.545

21.Reserves al ready ext racted as on31.03.2016 (Mt)

3.619 Nil

22.Balance Extractable Reserves as on1.4.2016 (Mt)

3.959 3.545

22. Status of MiningDev. & Dep. is inprogress in LWS

Bagdona Seam isVirgin

8.2 SURFACE CONSTRAINTS ON MINE DEVELOPMENT

The leasehold area of Tawa-II U/G Mine is overlain by the surface featureslike Satpura Reservoir, Tawa River, Forest Road converted to an IndustrialRoad serving as coal despatch road and Infrastructure of the mine.

More than half of the surface area over the mine is forest land consisting ofAsir Reserve Forest. Although extraction of coal seams is proposed bycaving, there will be only a marginal impact on the forest due to subsidenceas brought out in study report of Forest Research Institute, Jabalpur. Coal inthe form of developed pillars is proposed to be left below and within safedistance of the industrial road and the infrastructure of the mine. No miningwithin safe distance of Satpura Reservoir is proposed in this report.

8.3 UNDERGROUND CONSTRAINTS ON MINE DEVELOPMENT

Satpura Reservoir and Tawa River are located on the South and West of theproposed mine. Tawa River forms major part of the western boundary ofTawa-II U/G Mine. Since the extent of any surface water body is consideredupto its highest flood level, a barrier of solid coal has been left along the HFLof Satpura Reservoir based on the angle of draw. The angle of drawconsidered is 270 as experienced in the nearby mines.

Development belowground will be restricted to 15m from the Eastern Bank ofTawa River. During extraction stage, a barrier of coal in the form of solidpillars, of width based on angle of draw and depth of seam will be left againstTawa River.

The industrial road providing access to the incline site of Tawa-II U/G Mine ispassing over coal bearing area of the mine. The inclines, airshafts and mine



infrastructure are also located on coal bearing area. Although development inboth the seams will be done below these areas, during extraction stage, abarrier of coal in the form of solid pillars, of width equivalent to full depth ofcoal seam will be left against the mine entries and infrastructure.

Cavability of roof overlying LWS and Bagdona Seam may likely poseproblems, which may require the initiation of induced caving methods in orderto ensure safety of depillaring operations.

8.4 SELECTION OF MINING METHOD

Due to dense cover of forest, less seam thickness and high initial depth,Opencast mining of coal seams was ruled out in the sanctioned project reportfor Tawa-II U/G Mine.

The mine is already in operation and development and depillaring is inprogress in Lower Workable Seam. Semi-mechanised Bord & Pillar method ofmining with intermediate technology was proposed in the Sanctioned P.R.Coal is prepared by blasting-off solids and loaded by low-height LHDs ontobelt conveyors.

Continuous Miner Technology in conjunction with shuttle cars as transport linkcan be introduced in Tawa-II U/G Expansion Mine in addition to LHD districtsas it has seam thickness and gradient. The mine is likely to be dry and theroof behaviour is expected to be good. This technology is not capitalintensive like longwall method and has greater flexibility for its application inproperty like Tawa-II. The other advantages of adopting this technology are asfollows:

a) Higher production capacity from one district.

b) Centralised and concentrated working places enabling bettersupervision and safety.

c) Easier and better management of ventilation.

d) Better utilization of men and machines.

e) Improved roof condition and conservation of coal during depillaring.

f) Requires lesser manpower.

Therefore, in addition to the existing 3 LHD districts proposed to produce 0.50Mty, a Continuous Miner Package is proposed to be introduced in Tawa-IIU/G Expansion Mine to produce an additional 0.36 Mty from one districtmaking it to a total production capacity of 0.86 Mty.

8.5 MINE DEVELOPMENT STRATEGY

For the development of the proposed Tawa-II U/G Expansion Mine, thefollowing strategy is envisaged:



a) Approval of Project Report for Tawa-II U/G Expansion Mine withintroduction of C.M. Technology on hiring of equipment basis inaddition to existing LHDs.

b) Formalities regarding installation and commissioning of ContinuousMiner Package by hiring of equipment.

c) Approval of EMP for enhanced production and Forestry Clearance.

d) Land Acquisition for proposed intake airshaft.

e) Scientific studies for design of support system, hydrogeological studies,subsidence prediction studies, etc.

f) Installation and commissioning of chair lift type man riding system inIncline and main trunk roadways of Bagdona Seam.

g) Drivage of underground drifts from LWS to Bagdona Seam.

h) Development and extraction of panels in LWS and Bagdona Seam asenvisaged in the liquidation plan.

i) Procurement of P & M as per phasing given in Appendix-A.3.

j) Clean water supply arrangement for C.M. package.

k) Drivage of drifts across faults and dykes in Bagdona Seam as indicatedAppendix A.8.1.

l) Operating 3 existing LHD districts and proposed C.M. district toproduce 0.86 Mty of target production in 4 th year and continuing withthe target production as per proposed liquidation plan.

9.0 METHOD OF MINING & MINING SCHEDULE

9.1 METHOD OF DEVELOPMENT

Tawa-II U/G Mine is an operating mine being operated on Bord & Pillarmethod. The main trunk roadways will consists of 5 headings and the panelswill generally consist of 5/6 headings, as this is the standard and mostproductive width for LHD or Continuous Miner district. In the panels, whichare near to the faults or dykes, or in odd shaped areas, the number ofheadings may be increased or decreased in view of conservation of coal asagainst creating another panel.

The main trunk roadways of both the workable seams are superimposed inboth the workable seams though there is sufficient parting. The pillars in maintrunk roadways would be square except at locations where there is a changein direction of galleries. The pillar sizes in Lower Workable Seam are 22.5m x



22.5m, 25.5m x 25.5m, 34.5m x 34.5m while those in Bagdona Seam will be34.5m x 34.5m for gallery width of 4.8m.

The height of development galleries will be restricted to 3.0m or the seamthickness whichever is lower in Lower Workable Seam.

Since the maximum cutting height of proposed Continuous Miner is about4.0m, the concept of continuous miner application demands that the galleriesbe supported only one time using good quality roof bolts so that no furtherheightening is involved and scope for secondary support is ruled out.

The existing inclines and the existing return airshaft have been driven uptoLWS. The proposed intake airshaft had been sunk upto LWS only. TheBagdona Seam would be tapped by driving 4 nos. reverse drifts from LowerWorkable Seam.

The standard layout for development using Continuous Miner with 5 headingsis explained as follows:

a) One drive for the continuous miner to be cuttingb) One drive being roof boltedc) One drive being cleanedd) One drive having the ventilation and direction lines extendede) One drive ready for cutting

This layout ensures that the cutting machine always gets a supported face tocut and there is no idling of equipment due to shortage of working faces.

The layout proposed for LHD district is the routine layout in vogue in Tawa-IIU/G Mine and in most of the mines of Pathakhera Area and WCL.

9.2 COAL & MATERIAL TRANSPORT

In continuous miner district, a 1000 mm wide "fire resistant" gate beltconveyor of 200 tph will be installed in the center drive to ensure equaltramming distances and cable lengths on each side of the loading point.

In the LHD districts, face transport shall be by pony belt conveyors of 800mmwidth and 100 tph capacity. The pony belts shall feed to the gate belt of samewidth and capacity. Material transport shall be by haulages.

Material such as roof bolting consumables, spare parts, cables, lubricants,ventilation stopping materials etc. will be transported to within one pillar of thegate belt tail end by means of a combination of direct and endless haulages.

9.3 VENTILATION



Intake ventilation air reaches the face along the rise / dip three drives of thepanel coursed by brick stoppings suitably plastered to minimize leakages.The stoppings are to be maintained within a maximum of 2 pillars of the gatebelt tail end. The remaining two drives are used as return airways.

Leakage through the last ventilation connection is to be controlled bytemporary stoppings. Minimum 20 m3/sec to 25 m3/sec quantity of air isrequired in the LVC of the continuous cutting machine panel as per theinternational practice.

Ventilation of each blind end is achieved by forced auxiliary ventilation and thecontinuous cutting machine water spray system, dust scrubber system. Twoauxiliary fans with duty of 12 m3/sec and reinforced flexible ducting forcing theair into the working faces are to be installed.

Auxiliary forcing fans of duty 3-6 m3/sec with semi-rigid ducting of 700mmdiameter shall be used for ventilating the working faces in LHD districts.Intake ventilation air reaches the face along the rise / dip three drives of thepanel coursed by brick stoppings suitably plastered to minimize leakages.

9.4 CLEAN WATER & POWER SUPPLY

Clean water at neutral pH and minimum suspended solids is required at therate of 250 litres per minute at 200 kPa pressure for cooling motors, drillingand dust suppression. The clean water shall be supplied by means of a 100mm diameter pipe range installed in the conveyor drive. Near the gate belttail end, a manifold distributes the clean water to the equipment such ascontinuous miner, roof bolter and feeder breaker through flexible trailingpipes.

Clean water supply to the LHD districts shall also be by way of 100 mmdiameter pipe range laid along the gate belt roadway. The water requirementfor UDMs and hydraulic roof bolter has been assessed as 1 lps per machine.

Power is supplied to the district load center at 3.3 kV. The district load centerconsists of a 1500 kVA 3.3kV / 1.1kV step down transformer along with adistribution board with a number of safety devices to supply power at 1100Vto all the equipment except LHDs etc which operate at 550V.

9.5 STRIKE DEVELOPMENT

The Strike development, i.e., development in panels will be done using thecontinuous miner package equipment in C.M. panels and LHD - UDMcombination in LHD panels. The continuous cutting machine operates on a"place changing" system. Place changing is where the continuous cuttingmachine cuts for a specific distance beyond the last row of supports (upto amaximum of 15 m called a 'place') using radio or umbilical cord remote controlof the continuous cutting machine.

For Tawa-II U/G Expansion Mine, this distance has been assumed to be



around 10m based on the likely strata behaviour. The work force at all timesoperates under supported roof. Once a "place' is complete, the continuouscutting machine is trammed to an adjacent face in the same heading or in theadjacent heading to commence the cutting cycle again.

Once the continuous miner has been trammed out of a particular heading, theroof-bolting machine is trammed in to support the area mined by thecontinuous cutting machine. The machines therefore operate independentlyand have greater flexibility for both cutting and roof bolting operations.

The width of the cutting drum of the continuous cutting machine is about3.3m. The continuous cutting machine sumps in between 0.5m and 0.75m atroof level on one side of the gallery, the rear stab jack on the machinelowered and the head sheared down to floor level. This cycle is repeated 3 to4 times, the roof and floor trimmed and the operation repeated for theremaining 1.5 m gallery width. The depth of each web is 0.8 m.

9.6 METHOD OF EXTRACTION

In Tawa-II U/G Expansion Mine, extraction of developed pillars by continuouscutting machine or by LHDs is proposed by caving at all places, which areoutside the angle of draw of surface features. It is anticipated that permissionto extract the pillars formed during development will be granted by DGMSprior to completion of development. Pillar extraction would then commenceimmediately upon reaching the panel boundary.

Full mining height will have to be maintained during development and pillarextraction and it will commence without any advance support being required.The infrastructure, conveyor, material transport system, power, water,pumping and ventilation are in place from the development phase. The sameequipment is required for pillar extraction as for development.

Pillar extraction may follow the traditional 'diagonal line' or the preferred'straight line' method with continuous cutting machine. The disadvantage ofthe 'diagonal line' system with fully mechanized equipment is the creation ofexcessive tramming distances, which effectively restricts production.

The protection afforded by the 'diagonal line' was originally developed for ahand loading scenario due to the long time period the pillar had to stand whilebeing extracted and the number of working places required by cyclic drill blastand hand-loading method. The 'straight line' method reduces both trammingdistances and cable lengths to a minimum while optimizing tramming routes.

Pillar extraction will be by splitting and slicing of pillars. The pillars will be splitinto two / three parts depending upon the pillar size, by driving dip splits andthe slices will be driven from the splits / original galleries at 60o as against 90o

to the split direction. Splitting of pillar will be restricted to a distance of onepillar from the pillar under extraction.

The proposed mining cycle for pillar extraction and the sequence of



operations is as under:

- Cut 1 is driven a maximum 15 m. For purposes of this Expansion P.R., ithas been assumed to be 10m.

- The continuous cutting machine is trammed to cut 2 and commencescutting while cut 1 is supported by the roof bolter.

- Once the continuous cutting machine completes cut 2 and roof bolting iscompleted in cut 1, the continuous cutting machine commences cut 3.

- The roof bolter supports cut 2 while the cutting machine completes cut 3.

- This process is repeated for cut 4.

- The pillar will be split right through and closely spaced roof bolts installed atall the proposed goaf edges. These bolts serve the purpose of breaker lineso the need of skin-to-skin chocks at goaf edges with corner props isobviated. In poor roof conditions, the split is not driven right through thepillar and a 2 m thick coal rib is left against the goaf edge as additionalprotection to the goaf edge.

- Flanking cuts 5, 6 and 7 are then taken from the cover of the supportedpillar split (cuts 1 and 3). Further support is generally not necessary sincethe continuous cutting machine operates within 15 m of the face and thecontinuous cutting machine operator and shuttle car operators are alwaysunder the last row of support.

- Additional coal may be extracted from the 'snooks' (remnant portions ofthe coal pillars) as the continuous cutting machine is retreated judiciouslydependent upon the face conditions at the time of extraction.

- The remaining flanking cuts are taken in a similar manner from the cover ofthe original fully supported development drive.

All activities required to be undertaken in the LHD districts beforecommencement of depillaring will hold good for the continuous cuttingmachine district also.

All provisions of CMR 1957 and DGMS circulars regarding fencing of surfacearea, formation of sub-panels, standards of construction of isolationstoppings, isolation of every panel immediately after it has been goaved out,inspection of depillaring districts & around the goaved out areas, maintenanceof records thereof, maintenance of subsidence records, plans / sections,information regarding local falls etc. and submission of copies thereof to theDGMS, will hold good for the continuous cutting machine district also.

9.7 SUPPORT SYSTEM

In order to ensure good quality roof supporting, dedicated roof bolting



machines and strict quality control in workmanship and bolting consumablesis required. It is proposed to install resin encapsulated roof bolts in thecontinuous cutting machine district. The reason being that only this kind ofbolting can keep pace with the face advance in case of continuous cutting.

The gel time of resin is one minute as against the setting time of 30 minutes ofcement capsules and the load bearing capacity of the resin encapsulatedbolts is 14 - 18 t as against 8 - 10 t of cement encapsulated bolts.

Since the unsupported cut-out distance is likely to be sufficient (estimated tobe around 10m for Tawa-II U/G Mine), the time lag in supporting the freshlyexposed roof has to be minimized by installing a bolting system, which setsfaster and has high bond strength.

The support system during development stage will be designed based on theRMR of immediate 2.0 m roof strata and the guidelines for design of supportsystem laid down by DGMS in its circulars. 4 nos. resin encapsulated bolts of1.8 m length are proposed in a row at 1.2 m spacing for a gallery width of 4.8m in the freshly exposed area for pillar sizes 25.5m x 25.5m and 34.5m x34.5m. The spacing between the adjacent rows will be 1.2 m. Thegeologically disturbed zones will be additionally supported.

In the continuous miner panel, during extraction stage, the splits will besupported by 3 nos. resin encapsulated roof bolts, 1.8 m long, in a row at 1.8m spacing. The spacing between the rows will also be 1.8 m. At the goafedges, the bolting density will be increased with additional number of rows ofbolts. The increased density at the goaf edges will serve as breaker-linesupport. The above mentioned support system is only indicative and will begoverned by the approved SSR.

9.8 PRODUCTION PARAMETERS

The production parameters of the continuous miner panel are based on thetime study of continuous miner package equipment carried out at Tandsi U/GProject of WCL and Anjan Hill Mine of SECL. Based on the analysis of timestudy and the support system, the production parameters of the continuousminer panel for Tawa-II U/G Mine are tabulated as under:

Coal produced in one round = 4.8 x 2.0 x 10 x 2 x 1.55 = 298 t say 290 t.

Time available for production in 3 shifts = 16 hours.

Possible no. of rounds of cutting = 16 x 60 = 4.5 cycles 213

Production per day = 16 x 60 x 290 = 1307 t say 1300 t.213

Time available for roof bolting in 3 shifts = 16 hours.



No. of cycles of roof bolter = 16 x 60 = 6 cycles. 156

Production per day on the basis of bolting time assuming = 290 x 6 = 1740 t.deployment of 2 nos twin boom roof bolters simultaneously

Production per day on the basis of cutting time = 1300 t.

Therefore Possible Production per day taking minimum of the above = 1300 t.

Production capacity proposed for the continuous cutting district = 1200 tpdwith 5 to 10% cushion

Production parameters for LHD districts in Lower Workable Seam andBagdona Seam are as under:

Sl.No.

Parameters Production ParametersL.W.S. Bagdona Seam

1 Gallery width 4.8 m 4.8m2 Gallery height 2.3 m 1.75m3 Pull per blast 0.8 m 0.8m4 Sp. Gravity of coal 1.55 1.555 Coal per blast 4.8 x 2.3 x 0.8 x 1.55 = 14 4.8 x 1.75 x 0.8 x 1.55 = 10.46 No. of headings 7 77 No. of blasts per shift 13 138 Production per shift 14 x 13 = 182t, say 180t 10 x 13 = 1309 Production per day 180 x 3 = 540 tpd 130 x 3 = 390 tpd, say 400 tpd

9.9 PRODUCTION & TIME SCHEDULE

The balance extractable reserves available in Tawa-II U/G Expansion Mine ason 01.04.2016 are 7.504 Mt only (3.959 Mt in LWS and 3.545 Mt in BagdonaSeam). It is proposed in this report to deploy one Continuous Cutting Machinein Bagdona Seam whereas LHD panels will continue production in LWS. Withthis arrangement, the annual target production will increase from 0.50 Mty to0.86 Mty (0.50 Mty from existing LHD panels in LWS and 0.36 Mty from oneContinuous Cutting Machine panel in Bagdona Seam).

However, the total extractable reserves available in the mine is only 7.504 Mtand therefore entire reserves will be exhausted in 13 years with LHD + CMcombination.

It is proposed that existing production of 0.50 Mty (2015-16) will continue from3 operating LHD districts till the reserves of LWS are exhausted. Thisscenario of producing 0.50 Mty from LHD districts in LWS will continue foreight years i.e., 2023-24. In Bagdona Seam, it is proposed to introduce oneContinuous Miner district on Hiring basis from 3rd year of operation (2018-19)



& onwards and will continue for a period of 9 years or till the reserves ofBagdona seam are exhausted if extension of contract is permitted. The totallife in this option will be 13 years.

The Liquidation Plan showing year-wise and seam-wise coal extraction for thetotal life of Tawa-II U/G Expansion Mine is given in the following table:

Sl.No.

Year Production from YearlyProdn. (Mt)

Remarks

1 2016-17LWS (LHDs) 0.50

Drifts from LWS to Bagdona are inprogress. LWS = 3 LHD districts

Bagdona (CM) -TOTAL 0.50

2 2017-18

LWS (LHDs)0.50

Drifts from LWS to Bagdona areproposed to be completed. 3 LHDDstricts in LWS & Main TrunkRoadways of Bagdona Seam

Bagdona (LHDs)

TOTAL 0.50

3 2018-19LWS (LHDs) 0.50

3 LHD Dstricts in LWS & 1 CMdistrict in Bagdona Seam

Bagdona (CM) 0.18TOTAL 0.68

4 2019-20LWS (LHDs) 0.50



5 2020-21LWS (LHDs) 0.50



6 2021-22LWS (LHDs) 0.50



7 2022-23LWS (LHDs) 0.50



8 2023-24LWS (LHDs) 0.46



9 2024-25LWS -

LWS Reserves Exhausted and 1CM district in Bagdona Seam

Bagdona 0.36TOTAL 0.36

10 2025-26LWS -

1 CM district in Bagdona SeamBagdona 0.36TOTAL 0.36

11 2026-27LWS -

1 CM district in Bagdona SeamBagdona 0.36TOTAL 0.36

12 2027-28LWS -

1 CM district in Bagdona Seam or3 LHD districts


13 2028-29LWS -

1 CM district in Bagdona Seam or1 LHD district




TOTAL EXTR. RESERVES (Mt) 7.51

9.10 SCOPE OF WORK AND OBLIGATIONS OF BIDDER AND OWNER

The scope of work shall include all the obligations covered in the various partsof the Tender document such as NIT, Instruction to Bidders, Conditions ofcontract. The scope of work shall also include the following:

9.10.1 Scope of Work and Obligations of Bidder

a) The successful bidder is to deploy, operate and maintain theContinuous Miner / Similar Equipment with Continuous Cutting Technology inTawa-II underground mine of WCL to produce the minimum guaranteedproduction of coal as given below against each production year & transportcoal from face to Trunk belt.

The successful bidder is required to get DGMS approval and commence coalproduction within 18 months from the date of issuance of Letter of Acceptance.

1st Production Year 0.18 MTY 2nd Production Year 0.36 MTY3rd Production Year 0.36 MTY4th Production Year 0.36 MTY5th Production Year 0.36 MTY 6th Production Year 0.36 MTY7th Production Year 0.36 MTY8th Production Year 0.36 MTY9th Production Year 0.36 MTY

b) The successful bidder shall get conducted scientific study for obtainingDGMS permission for deployment of Continuous Miner / Similar Equipmentwith Continuous Cutting Technology in the above mine and strata monitoringrequired by DGMS.

c) The successful bidder shall design, engineer, finance, procure, install,operate and maintain the entire Continuous Miner / Similar Equipment withContinuous Cutting Technology to ensure extraction of coal of pre-determinedquality for the specified duration for WCL.

d) The successful bidder shall deploy proven model of equipments. Thesuccessful bidder shall procure all kinds of spares and consumables requiredto operate the Continuous Miner / Similar Equipment with Continuous CuttingTechnology during the contract period and also materials required forsupporting the roof.

e) Approval of equipment: For equipment and machinery and goods to besupplied under the contract which require permission by Director General ofMines Safety (DGMS), Dhanbad, India for use in coal mines, such required



permission and approvals shall be obtained by the successful bidder at hisown cost. Any addition /alteration suggested by DGMS while approving theequipment, to be undertaken by the successful bidder and cost of suchaddition / alteration on the equipment shall be borne by him.

f) The successful bidder should ensure for the maximum recovery of coalwithout violating any provisions of Coal Mine related Acts and Laws andsafety.

g) The successful bidder shall plan, design and develop the panel andface. The successful bidder shall prepare Annual operation Plan incorporatingmonth-wise coal production. Implementation of the above operational planshall be implemented only after approval of WCL. Any change in AnnualOperational Plan, during course of implementation, shall be effected only withcompetent approval of WCL.

h) The successful bidder shall procure, install and maintain of all thefacilities required within the district. This will include face communication,support, lighting, pumping, loading and transport of coal up to Trunk beltconveyor, power supply, water, support material, ventilation at the district asper clause 7.2.6 and environment monitoring in the district.

i) Pumping water from the active working faces to the nearest sump wouldbe the responsibility of the Successful bidder. Auxiliary ventilation at theworking faces would be the responsibility of the Successful bidder.

j) All activities related to production within the district shall be theresponsibility of the successful bidder.

j) The successful bidder shall support the roof suitable in accordance withapproved SSR under Coal mines Regulation 108 of CMR 1957.

k) The successful bidder shall arrange 100% financing of proposed work.

l) Drifting Across Fault

Drifting across faults with throw upto 10m shall be done by the successfulbidder using mechanised means. For this job, payment shall be madeseparately as per last awarded rate prevailing at the Mine / Area. If theawarded rate is beyond six months, updation will be done as per Civil Manualapplicable to WCL (Presently 5% per annum) from the completion date of thelast awarded rates of work executed, worked out as per cu.m. of drivage.

9.10.2 Scope of Work and Obligations of Owner

During the Contract period, WCL would provide the following facilities:

a) WCL shall make the Mine Site available to the Successful bidder andshall carry out the Management of the mine as per all statutes and laws,including but not limited to Coal Mines Act, Regulations, Rules, and other



statutes and laws applicable to coal mines in India. In particular theresponsibility for environmental matters of any nature whatsoever is with WCLand WCL will indemnify the Successful bidder and will hold the Successfulbidder harmless with regard to all costs, damages and liabilities arising inconnection with environmental pollution & subsidence.

b) WCL will provide Trunk transport & surface handling of coal produced.Out bye coal clearance shall be ensured at an average rate of 400 tonnes perhour.

c) WCL will provide electrical power on chargeable basis at a single pointat 1.1/3.3/6.6 kV at the district entry point through separate meter. Distributionof power within the district and supply of required transwitch unit, switchgears,cables, cable couplers etc shall be the Contractor’s responsibility. Aschematic layout diagram for power supply, including likely powerconsumption and proposed earthing system equipment wise shall befurnished by the Contractor. WCL shall also provide power at 440 V/220 V onsurface as per requirement on chargeable basis. The cost of electricity onactual as per prevailing rate shall be deducted from the monthly running bill ofthe Contractor.

d) WCL shall provide water of required quality, quantity and pressure nearContinuous Miner / Similar Equipment with Continuous Cutting Technology.Conveying of the water to the machines and pumping out water from the faceto the district sump shall be responsibility of Contractor. Pumping out of thewater from the district sump to surface shall be the responsibility of WCL.

e) Contractor shall make appropriate arrangement for proper storage ofconsumables, spares and assemblies etc. WCL shall provide suitable space toContractor for construction of the store during the contract period only.

f) WCL will provide Ventilation, communication system and lighting up tothe district entry point. Pumping out of the water from the mine sump tosurface shall be the responsibility of WCL.

g) WCL will provide the existing available workshop facilities for carryingout repair & maintenance of Contractor's equipment. Provision of any additionalworkshop machinery specifically required for repair and maintenance ofContractor's equipment shall be the sole responsibility of Contractor.

h) WCL shall provide suitable accommodation on chargeable basis, ifavailable, for use by Contractor. However, WCL shall provide sufficient land forconstruction (at the cost of Contractor) of temporary accommodations forContractor's personnel.

i) WCL shall provide local medical facility on chargeable basis as per theprevailing standard norms of WCL for personnel of non-entitled class.



j) WCL shall provide manpower for statutory supervision of various facesoperations and monitoring of support being carried out by the Contractor.

k) WCL shall keep the main dips sufficiently in advance so as to ensurethat next panel is available for development before the current panel (whereContractor’s equipment is deployed) is fully developed as planned.

l) If the original galleries in the developed area are required to be heightened forextraction of the stipulated thickness of the seam, blasting shall be arrangedb y WCL. Necessary assistance for blasting shall be provided by theContractor. Re-supporting of roof shall be done by the Contractor.

10.0 EQUIPMENT SCHEDULE

As continuous cutting technology on hiring is proposed in Bagdona Seam,only the Transport Equipment in Belt Incline from surface to floor of LWS,Stone Drifts from Lower Workable Seam to Bagdona Seam and Main TrunkRoadways of Bagdona Seam is proposed. The equipment required to producefrom C.M. Panel would be the responsibility of the Bidder as per the scope ofwork of the bidder mentioned in previous para.

The schedule of main equipment additionally proposed along with phasing istabulated as under for ready reference:

Sl.No.

Particulars of Proposed Equipment Quantity Phasing of Proposed EquipmentI Year II Year III Year IV Year

1 C.M. Package (on Hiring) 1 no. - - 1 no. -2 Trunk Belt Conveyors 6 sets - 4 sets 2 sets -3 PVC Belting for Trunk Belt (D-5000) 5200m - 4300m 900m -4 Tugger Haulages 2 nos. - 1 no. 1 no. -5 Endless Haulage 1 no. - 1 no. - -

6Man Riding Chair Lift System inIncline & Trunks

1 set - - 1 set -

7 Electrical Equipment LS - LS LS LS8 Pumps, Pipes & Pipe Fittings LS - - LS -9 CHP LS - LS - -

11.0 MINE TRANSPORT

11.1 EXISTING & PROPOSED COAL TRANSPORT SYSTEM Two nos. of inclines, Belt Incline and Haulage Incline are existing. Belt Inclineis used for men transport and coal transport from underground to surface byBelt Conveyors and Haulage Incline is used for material transport tounderground. Coal production from mine is with the help of three nos. of LHDdistricts (existing) and a continuous miner district has been proposed in thepresent report to increase the production of coal from mine.

11.1.1 Transport arrangement at Face & Gate Roadways for C.M. district



In each district, continuous cutting machine will cut coal at coal faces and loadinto shuttle cars by inbuilt gathering arms and chain conveyor. The shuttlecars will carry coal and feed to the hopper of a feeder breaker installed in thecentral gate road. Crushed coal from the feeder breaker will be loaded onto1000mm gate belt conveyors.

The gate belt conveyors will be used for transportation of coal to trunkroadways. It will be the responsibility of the hiring agency to transport the coalfrom faces upto trunk belt conveyor.

An electronic belt weigher, continuous type, will be provided on a gate beltconveyor (GB10) before discharging onto trunk belt conveyor for weighing ofcoal production from C.M. district.

11.1.2 Transport in Trunk Roadways

The trunk belts receive coal from gate belts and ultimately discharge ontotrunk belt conveyors installed in main trunk roadways of Bagdona Seam.Financial provision of six nos. of trunk belts of different capacities anddifferent lengths have been kept to take care of the transportation of coal frommain trunk roadways of Bagdona Seam upto surface.

For carrying enhanced production of 0.86 Mty from 3 LHD districts and 1 C.M.district, it is proposed that the trunk belt installed in the belt incline is to bereplaced by one NFLP Trunk Belt Conveyor with specifications of 1200mmwide, 470m length, 2.3 m/sec speed with 400 tph capacity and 2 x 150 kWdrive has been proposed.

11.1.3 Men & Material Transport

A direct haulage of 90 kW is existing on surface near Haulage incline formaterial transport from Surface to LWS. For further material transport fromLWS to Bagdona Seam, 2 nos of tugger haulages and 1 no. of endlesshaulage have been proposed. At the faces, material will be transportedmanually.

Men will travel from Surface to touching point of inclines in LWS, drifts fromLWS to Bagdoan Seam and Main Trunk Roadways of Bagdona Seam by aman riding chair lift system. In gate roadways, men will travel along side of thebelt conveyors.

11.1.4 The details of Transport Plant & Machinery and the estimated additionalcapital requirement are given at Appendix - A.3.

12.0 VENTILATION

12.1 As per the approved report, 2 inclines (intake airways) and an upcast airshaft(return airway) were proposed for the ventilation of Tawa-II U/G Mine for



production capacity of 0.39 Mty from 3 B & P Semi Mechanised districts.Drivage of 2 intake inclines and sinking of the return airshaft are completed.

Presently the mine is producing 0.50 Mty from development / depillaringdistricts of Lower Workable Seam. Augmentation of mine production from0.50 Mty to 0.86 Mty with introduction of one C.M. district results in themodification of the ventilation system design.

To cope up with the revised production requirements, this mine has beenproposed with 3 intake airways i.e., 2 inclines and an airshaft (as the three willact as down cast airways) & one return airshaft (which will act as upcastairway). The return airshaft is commissioned and ventilation connections areestablished, hence Incline No. 2, which was functioning as return airwayearlier is presently functioning as intake airway. One downcast airshaft (whichwill act as intake airway) is proposed in this Expansion P.R. in addition to theapproved 2 inclines (intake airways) & 1 airshaft (return airway). However, oncommissioning of ventilation arrangement after expansion, the mine will havethree main intake airways and one main return airway shaft.

12.2 SPECIFICATIONS OF PROPOSED MAIN MECHANICAL VENTILATOR

As per the simulation study carried out to produce 0.86 Mty from 3 LHDdistricts and 1 C.M. district in Tawa-II U/G Mine, the main mechanicalventilator (exhaust type) should be capable of delivering the following airquantities at desired pressure during different stages of mine resistance eitherby changing the fan blade angle or RPM of fan motor.

Sl. No. Particulars Details1 Air quantity (m3/sec) 2102 Air Pressure (Pa / WG) 1523 / 1553 Estimated fan motor output (kW) 455

During the stage when 3 LHD districts are being operated in LWS and 1 C.M.district being operated in Bagdona Seam producing the target capacity of 0.86Mty, the mine resistance as well as pressure increases. Therefore, a highercapacity fan motor would be needed (455 kW) to deliver an air quantity ofabout 210 m3/sec at 155 mm of WG. Presently the main mechanical ventilatorinstalled in Return Airshaft is PV-300 fan which is in operation in the minewhich is sufficient to take care of the proposed enhanced production.

12.3 AUXILIARY VENTILATION SYSTEM 7 nos. of auxiliary fans are existing in the mine for 3 nos. of LHD districtswhich are capable of discharging airflow of 3 - 6 m3/sec at a pressure of 250 -60 mm W.G. (with a 15 kW fan motor). For C.M. district, the bidder will takecare of district ventilation.

13.0 WATER MANAGEMENT & PUMPING



13.1 Considering enhancement in production from 0.50 mty to 0.86 Mty byintroduction of one C.M. district in Bagdona Seam of Tawa-II U/G Mine, oneFLP centrifugal pump (80 lps, 200m head, 250 kW), two FLP centrifugalpumps (38 lps, 100m head, 75 kW) and two NFLP centrifugal pumps (11 lps,150m head, 37 kW) have been provided in this report along with pipes andpipe fittings.

13.2 CLEAN WATER SUPPLY ARRANGEMENT FOR C. M. DISTRICT

It is proposed to supply clean water from surface sump to the continuousminer district through a pipe range installed along the main incline and alongconveyor roadway to continuous miner district. A Return cum PressureRelease Valve will be installed with the delivery pipe circuit near the pump toavoid repeated starting and stoppage of surface pump meant for supplyingclean water to the district when the Continuous Miner is not operating andalso prevent wastage of clean water. For this purpose a 11 lps, 150m headpump will be installed at the surface sump to ensure the availability of desiredquantity of clean water at required pressure at the working district. Oneidentical pump will be kept as standby.

14.0 COAL HANDLING ARRANGEMENT

A small coal handling plant exists near Belt Incline to handle the entireexisting production of coal from mine. The CHP has facilities like storage,weighment of coal. The mode of despatch is by road with the help of trucks tomiscellaneous consumers and / or thermal power station.

Coal from underground is proposed to be brought to surface by trunk beltconveyor TB1 of 1200 mm wide through belt incline. TB1 discharges coal intooverhead twin hopper of 2 x 100 t capacity. Trucks are loaded from belowthese overhead hoppers.

One no. of electronic road weighbridge of 50t capacity is used for theweighment of empty and loaded trucks. The weighbridge has printing facilityfor keeping records and preparation of bills.

For the enhanced production, financial provision for supporting structure forbelt conveyor and drive house for the trunk belt conveyor along with steelstructure and foundation have been kept in this report.

15.0 UNIT WORKSHOP & UNIT STORES

The unit workshop at mine level will provide basic engineering support in theform of the repairs, maintenance, replacement of minor spare parts etc. Thefacilities and manpower provided in this workshop would be sufficient enoughto cater to the routine needs of various underground mining machinesoperating in the project.



Jobs that shall be carried out in the unit workshop shall be in the form of unitreplacement of assemblies or replacement of defective parts.

A small but independent unit stores has been envisaged to cater to the routineneeds of consumables, spares, POLs, etc of the mine. Unit stores shall havethe backing of the area stores and central stores for its smooth functioning.

16.0 POWER SUPPLY AND ILLUMINATION

16.1 SOURCE OF POWER SUPPLY

Considering Tawa-II U/G Expansion Mine area and deployment of 1 no. ofC.M. district and 3 nos. of LHD districts in the different locations of differentseams, it is proposed to install 33 kV/3.4 kV, 2 x 4.0 MVA capacity, substationnear Tawa-II inclines to supply power to different underground equipment.

The proposal of erection of 3 km long, 33 kV overhead line from SarniMPPGCL substation (near the Sarni dam) to the Tawa - II U/G Mine is alreadycompleted and in operation. The entire length of overhead line is passingthrough the forest area and is erected on 132 kV towers to keep a safedistance from the big height trees.

16.2 SALIENT FEATURES OF ELECTRICAL PARAMETERS

The salient features of electrical parameters for the incremental load due todeployment of C.M. in the proposed Tawa-II UG Mine are as given below:

Sl. No. Particulars Value1 SPECIFIC ENERGY CONSUMPTION: 14.86 kWh/t2 SPECIFIC POWER COST Rs. 140.02/t3 FIXED PERCENTAGE OF POWER COST 37.80 %4 VARIABLE PERCENTAGE OF POWER COST 62.20 %5 SPECIFIC DEMAND 2.903 MVA / Mt6 CAPACITOR BANK PROVIDED: 600 kVAR7 AVERAGE COST OF PURCHASED POWER Rs. 9.43 / kWh

17.0 CIVIL CONSTRUCTION

The Building Cost Index for the M. P. Region has been worked out to 471 in2016 (1st half) taking the prevalent rates of materials and labour. This BuildingCost Index is with reference to base 100 in Nagpur as on 1.1.1992.

No additional Service or Residential Buildings have been proposed in thisreport. No colony roads, culverts, drains, etc. have been proposed in thisreport. Additionally for operating Continuous Miner Panel, borewell provisionshave been made in industrial water supply which includes the waterrequirement for Continuous Miner Package.



18.0 MANPOWER PRODUCTIVITY & TRAINING

18.1 The total manpower on roll in Tawa-II U/G Mine as on 01.04.2016 is 1045including executives, underground manpower and surface manpower. Thismanpower is sufficient to produce 0.50 Mty from 3 LHD districts from Tawa-IIU/G Mine. Therefore, no additional manpower has been provided for the LHDdistricts operating in Lower Workable Seam.

As continuous miner district is on hiring, the manpower requirement upto thetrunk belt conveyor will be taken care of by the hiring agency. However, forthe main trunk roadways and other production services in Bagdona Seam, theadditional manpower requirement is estimated to be 61 (Underground = 51 &Surface = 10).

Present O.M.S. of Tawa-II U/G Mine is 1.92 t with the present manpower of1045 producing 0.50 Mty from 3 LHD districts. With the addition of 0.36 Mtyfrom one continuous cutting district and additional manpower requirement of61, the O.M.S. is projected as 22.569 t. However, the overall O.M.S. of Tawa-II U/G Mine producing 0.86 Mty will be 2.968 t.

18.2 TRAINING:

Mechanisation with continuous cutting technology has been proposed for theadditional production of 0.36 Mty in this mine and therefore, training should beimparted to all personnel connected with operation and maintenance ofdifferent machines. For operation of continuous cutting machine and its otherpackage equipment, training should be imparted either by machinemanufacturer or at other mines of WCL / CIL, where this technology is inoperation.

For other jobs, services of Chhinda VTC will have to be utilized till anotherVTC is established to cater to the requirements of the new mines. Supervisorytraining will be imparted at Supervisory Training Institute, Chhindwara.

19.0 SAFETY & CONSERVATION

The report has been drawn up keeping all the safety aspects in view. All theprecautions that have been laid in CMR, 1957 under the Mines Act, 1952 andthe conditions imposed by DGMS on various operations have to be followedstrictly without any deviation.

The coal seams in the proposed Project Report for Tawa-II U/G ExpansionMine are expected to be ‘Degree-II’ gassy seams. This assumption is basedon the fact that in the operating mines of Pathakhera Area, the coal seamshave been classified as Degree-II gassy seams by DGMS. It is necessary thatgassiness of the seams should be ascertained just after touching coal seams.

All the precautions laid down for mining problems like inundation, dustsuppression, fire & spontaneous heating, roof control and subsidence have tobe carefully followed.



19.1 EXEMPTIONS / RELAXATIONS REQUIRED FROM DGMS

Introduction of Continuous Miner Technology will require exemption fromcertain provisions of CMR from DGMS. Some of the exemptions specific tothe continuous miner technology are as follows:

i) To circulate quantity of air required at LVC of the continuous cuttingmachine panel as per DGMS permission given for different mines ofCIL where continuous cutting technology is in operation. DGMS hadspecified minimum air velocity of 0.5 m/sec over the machine or at adistance of 4.5 m from the face on the intake side, whichever is moreinstead of 2.5m3/min/tonne of daily output in some mines of CIL.

ii) Increasing gallery / split / slice width from 4.8m (max.) to 6.6m forensuring full utilisation of the machine and preventing cutting of cornersof the pillars.

iii) Extraction of pillars without installing breaker-line supports in the formof chocks at the goaf edge.

iv) Working in slices without support.

v) Reduction of the standard pillar size as contained in CMR 99.

vi) Corners of the pillars to be rounded to allow easier vehicular access.

vii) Use of two or more number of auxiliary ventilation fans in a district.

Other exemptions may also be required to approve the machinery and / ormining system.

19.2 SCIENTIFIC STUDIES

It is necessary to undertake the following scientific studies for properimplementation of this report:

- To undertake the physico-mechanical properties of rocks for designingthe support system and caving characteristics of the roof strata andcuttability of coal. It will be necessary to determine RMR for preparingthe support plan so that systematic support rules can be framed.

- To undertake the mapping of the direction of horizontal stresses and itsmagnitude, if any.

- To undertake the gas survey so that actual gas content of coal isdetermined in order to ascertain the actual degree of gassiness of thecoal seams.



- To determine the maximum unsupported cut-out distance duringdevelopment and extraction stage.

- To undertake hydrogeological studies for quantifying ground water andto assess impact of caving on existing ground water regime. This datawill also assist in identifying source of water for industrial use.

- To undertake subsidence prediction studies to determine the maximumsubsidence and maximum tensile strain below forest and tenancy land.

- To undertake cavability study of massive sandstone formation andsuggest the blast hole geometry in case caving has to be induced byblasting from the surface or underground.

20.0 ENVIRONMENT MANAGEMENT

20.1 The Ministry of Environment & Forests accorded Environmental Clearance forTawa-II Underground Expansion Coal Project of M/s WCL for a production ofcoal of 0.60 MTPA rated capacity in August 2006.

Presently the mine is producing 0.50 Mty from 3 LHD districts. With theintroduction of 1 CM district producing 0.36 Mty, the proposed target willincrease to 0.86 Mty. Therefore obtaining EMP approval and Forestryclearance for nominal production capacity of 0.86 Mty and peak productioncapacity of 1.075 Mty are the most important activities in implementation ofthe report. Therefore, a revised EMP may have to be prepared based on thisExpansion Project Report.

It is anticipated that levels of various air pollutants will be well under limits.However, only potential air pollutant will be SPM / Dust. During day to dayoperations at the mine and coal despatch road, adequate control measureslike water spraying, green belt development, regular cleaning and watersprinkling of coal transportation road, etc. will have to be adopted so as tominimise generation and propagation of dust.

20.2 IMPACT ON LAND USE

The total land involved in this project is 523.75 ha, out of which the land formining area is 520.00 ha and 3.75 ha forest land is for erecting 33 kV powerline, which has been acquired under Surface Rights.

This being an underground mine, minimal degradation of surface features isanticipated. The plantation is likely to be carried out along the transportationroute and no change is anticipated in the post mining land use pattern.

20.3 SUBSIDENCE EFFECTS



Underground mining with caving has been proposed in Tawa-II U/GExpansion Mine and therefore Subsidence Prediction Studies are proposed tobe carried out to assess the subsidence on surface due to undergroundmining and its impact on surface features. The surface topography is hilly innature and more than half of mine area is overlain by Asir Reserve Forest.

To study the impact of subsidence on surface, it is proposed to carry outsubsidence prediction studies by modeling. Based on the results of the study,necessary control measures have to be taken up.

It is suggested to generate subsidence related data while working. This datacan be utilised for calibrating the subsidence model for accurate prediction ofsubsidence and its related damages. Based on the recommendations ofsubsidence study, the coal sterilized within the barrier zones can be partiallyor fully released for extraction. For the subsidence prediction studies,necessary fund provision has been kept in the report.

20.4 ASSESSMENT OF ENVIRONMENTAL IMPACT & MITIGATION MEASURES

Assessment of environmental impact and mitigation measures for air, water,noise, land use, animal life, plant life, transportation, population, risks andhuman health will be dealt in detailed EMP Report.

A revenue cost of Rs. 6.00 per tonne of coal produced has been consideredfor the entire mine life for the mitigation of environmental impacts. Therevenue cost indicated above will cater to the needs of plantation & green beltdevelopment, environmental monitoring, social development andmiscellaneous pollution control measures.

21.0 MINE CLOSURE COST

The Mine Closure Cost for Tawa-II U/G Mine for a total area of 520 hectareshas been approved by WCL Board in its 244 th meeting held on 28.01.2013. Asper the above approved Mine Closure Plan, the total corpus fund to bedeposited in escrow account for 13 years life worked out to Rs. 900.88 Lakhsand the annual corpus fund to be deposited in first year (2012-13) was Rs.50.86 Lakhs.

The annual mine closure corpus fund for 4 years from 2012-13 to 2015-16has been deposited and the balance amount will be deposited in 9 years from2016-17 onwards.

Since there is no change in the mining area i.e., 520 hectares, the annualcorpus fund after escalation @ 5% has been considered in this report for 9years starting from 2016-17, although the life of the mine as per this report is13 years as on 01.04.2016. For this closure fund to be deposited in escrowaccount for next 9 years, the Mine Closure Cost works out to Rs. 9.08/t whichhas been considered in Appendix-C.

The detailed calculations for the balance life of mine are tabulated as under:



CALCULATION OF MINE CLOSURE COSTSl.No.

YEAR AnnualProduction (Mt)

Corpus Fund perYear (Rs. 000s)

Amount per Tonne(Rs/t)

1 2016-17 0.50 6181 12.362 2017-18 0.50 6490 12.983 2018-19 0.68 6815 10.024 2019-20 0.86 7156 8.32

Sl.No.

YEAR AnnualProduction

(Mt)

Corpus Fund perYear (Rs. 000s)

Amount per Tonne(Rs/t)

5 2020-21 0.86 7514 8.746 2021-22 0.86 7890 9.177 2022-23 0.86 8285 9.638 2023-24 0.82 8699 10.619 2024-25 0.36 9134 25.3710 2025-26 0.36 0 0.0011 2026-27 0.36 0 0.0012 2027-28 0.36 0 0.0013 2028-29 0.13 0 0.00

Total 7.51 68164 9.08

22.0 LAND ACQUISITION

22.1 LAND DETAILS WITHIN & OUTSIDE OF MINE TAKE AREA

The total land involved in this project is 523.75 ha, out of which the land formining area is 520.00 ha and 3.75 ha forest land is for erecting 33 kV powerline, which has been acquired under Surface Rights. The break-up of landrequirement is summarized below:

Sl.No.

Particulars Forest Land (ha) Non-Forest Land (ha) Total (ha)All

RightsSurfaceRights

MiningRights

AllRights

SurfaceRights

MiningRights

1.

Land for existing Mine infrastructure & proposed airshaft

4.800(Existing) + 0.400

(Proposed)

- - - - - 5.200

2.

Land for Bridge & Industrial Road

5.908(Existing)

- - - - - 5.908

3.Land for erection of 33kV Power line

-3.750

(Existing) - - - - 3.750

4. Mining Area - - 385.171 - - 123.721 508.892TOTAL 11.108 3.750 385.171 - - 123.721 523.750

Out of the entire mine area of 520.00 ha, 11.108 ha has been acquired underSurface/All Rights and balance 508.892 ha has been acquired under Mining



Rights. Out of this 520 ha, 396.279 ha comes under forestland and rest123.721 ha land belongs to others. Out of 396.279 ha forestland, 195.20 hais cleared under FCA, 1980 and remaining 201.079 ha is applied for forestryclearance.

In this report, for ventilation purpose, a new intake airshaft is proposed nearthe existing inclines for which 0.40 ha of land is required which is proposed tobe acquired under All Rights.

NPV payment for the entire balance forestland of 201.079 (applied for forestryclearance) has been considered @ Rs.8.00 lakhs per hectare, which worksout to about Rs. 8.0432 crores.

23.0 PROJECT IMPLEMENTATION SCHEDULE

23.1 For the development of proposed Project Report for Tawa-II U/G ExpansionMine, the following strategy is envisaged:

a) Approval of Project Report for Tawa-II U/G Expansion Mine with introductionof C.M. Technology on hiring of equipment basis in addition to existing LHDs.

b) Formalities regarding installation and commissioning of Continuous MinerPackage by hiring of equipment.

c) Approval of EMP for enhanced production and Forestry Clearance.

d) Land Acquisition for proposed intake airshaft.

e) Scientific studies for design of support system, hydrogeological studies,subsidence prediction studies, etc.

f) Installation and commissioning of chair lift type man riding system in Inclineand main trunk roadways of Bagdona Seam.

g) Drivage of underground drifts from LWS to Bagdona Seam.

h) Development and extraction of panels in LWS and Bagdona Seam asenvisaged in the liquidation plan.

i) Procurement of P & M as per phasing given in Appendix-A.3.

j) Clean water supply arrangement for C.M. package.

k) Drivage of drifts across faults and dykes in Bagdona Seam as indicatedAppendix A.8.1.

l) Operating 3 existing LHD districts and proposed C.M. district to produce 0.86Mty of target production in 4th year and continuing with the target productionas per proposed liquidation plan.

The time frame of the major activities leading to achievement of target



capacity is shown in the enclosed Harmonogram.

23.2 CONSTRUCTION SCHEDULE

The mine produced 0.50 Mty from 3 LHD districts in 2015-16. The proposedproduction from the C.M. district in first 2 years would be nil, 0.18 Mty in 3 rd

year and 0.36 Mty in 4th year. Therefore the target production of 0.86 Mty(additional production of 0.36 Mty) would be achieved in 4 th year.

24.0 FINANCIAL EVALUATION (LHD – Departmental & C.M. - Hiring Option)

24.1 The Project Report for Tawa-II U/G Expansion Mine was approved by WCLBoard (1st Stage Approval for the purposes of Environmental & ForestryClearances) in its 227th meeting held on 11.10.2010 with LHD - Departmentaland Continuous Miner on Partial Hiring for an Additional Capital Investment ofRs. 89.1888 Crores and for a target capacity of 0.75 Mty.

The Board accorded approval for entering into coal supply agreement withprospective consumer on cost plus basis to yield 12% IRR at 85% targetcapacity. The Board also accorded approval for intiating formalities regardingGlobal Bid for Introduction of Continuous Miner Technology by Hiring ofEquipment.

The first stage approval accorded by WCL Board was for P.R. capacity of0.75 Mty (0.39 Mty by LHDs on Departmental basis and 0.36 Mty byContinuous Miner on Hiring of Equipment basis). However, the existing Tawa-II U/G Mine has achieved 0.50 Mty from 3 LHD districts and therefore thisupdated Project Report of Tawa-II U/G Expansion Mine has been prepared for0.86 Mty (0.50 Mty by Departmental LHDs + 0.36 Mty by Continuous Miner onHiring). Thus the life of the mine in this updated project report has decreasedto 13 years.

24.2 CAPITAL INVESTMENT

The following table shows the headwise proposed Total Capital Investment(updated as on June 2016) for LHDs – Dept. & C.M. - Partial Hiring Option:

A/CHead

ParticularsLHD - Dept. & C.M. - P.H. Option (Rs. Lakhs)Total CapitalInvestment

WDV as on01.04.2016

Addl. CapitalInvestment

01 Land 846.19 34.07 812.12

02a) Service Buildings 48.39 48.39 -b) Residential Buildings - - -

03 Plant & Machinery 3677.29 542.01 3135.2804 Furniture & Fittings 14.29 14.29 -06 Vehicles 0.47 0.47 -07 Prospecting & Boring 213.43 213.43 -08 Development:

081. Capital outlay in mines 1308.78 368.10 940.6808.2 Roads & Culverts 25.46 25.46 -



08.3 Water supply & Sewerage 200.16 12.49 187.6708.4 EMP & PR Preparation Cost 184.48 153.72 30.76

08.4 (A) Env. Poll. Control Measures 81.37 55.75 25.6208.5 Scientific Studies 50.00 - 50.00

09Net Revenue ExpenditureCap. during Dev. Period

224.48 224.48 -

Total Capital Investment 6874.79 1692.66 5182.13

The head-wise provision of capital investment is shown in Appendix-A. Thehead-wise details of all the items provided in Appendix-A are shown inAppendix-A.1 to A.8.5 of LHDs - Departmental & C.M. - Hiring Option.

The Additional Capital Investment in LHDs - Departmental & C.M. - HiringOption works out to 5182.13 Lakhs. The Written Down Value (WDV) as perAsset Register as on 01.04.2016 is Rs. 1692.66 Lakhs. Therefore the TotalCapital Investment in this option works out to 6874.79 Lakhs.

Replacement Capital of Rs. 427.22 Lakhs of usable plant & machinery hasbeen considered in this option in cashflow.

24.3 FOREIGN CAPITAL

There is no foreign capital involved in operating continuous cutting machinepackage equipment in LHDs - Departmental & C.M. - Hiring Option as C.M.Package is to be operated by hiring agency to produce the target production.

24.4 BASIS OF PRICES OF P&M, CIVIL WORKS & HIRING RATE

The pricing of Plant and Machinery is based on the Standard Price List ofJune 2015 (escalated up to June 2016) circulated by the Specialist Cell ofCMPDI (HQ), Ranchi. The cost of Civil Works has been estimated on thebasis of Cost Index 471 for Madhya Pradesh as in Ist Half of 2016.

The Part-II (Price Bid) of the single qualified bidder M/s AMR India Ltd.,Hyderabad for the said tender was opened and the quoted specific price pertonne of coal production (excluding service tax and cess on service tax)received is Rs. 1489/Tonne.

General Manager (P&P), WCL vide his letter NGP/WCL/GM(P&P)/221 dated17.05.2016 requested R.D., RI-IV to get the updation of Expansion ProjectReport for Tawa-II U/G Mine done considering the quoted price on totalproduction and incremental production basis.

Therefore the Hiring Cost of Rs. 1489 / tonne has been considered inestimating the economics in LHDs - Departmental & C.M. - Hiring Option.As per the norms, no escalation in cost component has been consideredin the financial evaluation.

24.5 OPENING OF REVENUE ACCOUNT



Tawa-II U/G Mine is already in Revenue.

24.6 COMPLETION CAPITAL

As per the latest guidelines, the expected additional completion capital forTawa-II U/G Mine works out to Rs. 55.2409 Crores in LHDs - Departmental &C.M. - Hiring Option.

24.7 MANPOWER & O.M.S.

The total manpower on roll in Tawa-II U/G Mine as on 01.04.2016 is 1045including executives, underground and surface manpower with an existingO.M.S. of 1.920 t.

I n LHDs - Departmental & C.M. - Hiring Option, the additional manpowerrequirement for operating continuous miner package in panels and trunktransport of Bagdona seam will be 61 with an overall O.M.S. of 2.968 t.

24.8 E.M.S.

The EMS calculated as per CMPDI norms for LHDs - Departmental & C.M. -Hiring Option is Rs. 2028.42 which is considered for determining theeconomics in this report.

24.9 UNIT COST OF PRODUCTION

Appendix-C of LHDs - Departmental & C.M. - Hiring Option shows the TotalCost of Production which is tabulated as under:

Sl.No.

Particulars LHD - Dept. & C.M. - P.H. OptionCost of

Production @100% Capacity

(Rs./t)

Cost ofProduction @85% Capacity

(Rs./t)1 Salaries and wages 821.94 966.992 Stores 112.67 121.213 Power 152.30 161.214 Env. Pollution Control Measues 6.00 7.065 Misc. Expenses (incl. W/D) 125.03 138.036 Mine Closure Cost 9.08 10.687 Administrative Overhead 150.68 177.278 Hiring of Equipment 703.85 703.859 Depreciation 69.27 81.49

10 Interest on Working Capital @ 14.50% 42.43 43.3511 Interest on Loan Capital @ 11.50% 18.00 21.17

Total Cost of Production 2211.25 2432.31



24.10 CONSIDERATIONS IN COST OF PRODUCTION

a) The Cost of Production in LHDs - Departmental & C.M. - Hiring Option worksout to Rs. 2211.25/t and Rs. 2432.31/t at 100% and 85% of target capacityrespectively. In this option, the production has been considered as 0.50 Mtyupto 2nd year of mine operation, 0.68 Mty in 3rd year of mine operation, 0.86Mty from 4th year to 7th year, 0.82 Mty in 9th year and 0.36 Mty from 10th yearto 12th year and in 13th year, the production will be only 0.13 Mty.

b) For all the cost elements of cost of production in this option, weighted averageof cost of production as per the existing cost sheet and Incremental Cost hasbeen considered as per CMPDI norms.

c) Hiring Cost of Rs. 1489 has been considered as 100% variable cost forincremental production which equates to Rs. 703.85/t of total coal productionduring its entire mine life (Rs. 1489/t x 3.55 Mt of C.M. Reserves ÷ 7.51 Mt ofTotal Reserves)..

24.11 GRADE OF COAL & WEIGHTED AVERAGE SELLING PRICE

In LHDs - Departmental & C.M. - Hiring Option, the annual grade of coaldespatch during its total life of the mine varies from grade 'G8' to 'G7' as perGCV depending upon the year wise location of working panels and seams.

The weighted average sale value considering 98.5% and Rs. 79/t asprocessing charge for dispatching (–) 100 mm size coal works out to Rs.1778.03/t and Rs. 2117.39/t for Power Sector and Non-Power Sectorrespectively.

24.12 PROFIT / LOSS

In LHDs - Departmental & C.M. - Hiring Option, the loss with weightedaverage sale value of coal of Rs. 1778.03/t for Power, Defence & FertiliserSector works out to Rs. 433.22/t and Rs. 654.28/t at 100% and 85% of targetcapacity respectively.

The loss with weighted average sale value of coal of Rs. 2117.39/t for NonPower Sectors works out to Rs. 93.86/t and Rs. 314.92/t at 100% and 85% oftarget capacity respectively.

24.13 FINANCIAL I.R.R. & DESIRED SELLING PRICE TO YIELD 12% IRR

In LHDs - Departmental & C.M. - Hiring Option, the financial IRR of the projectfor Power, Defence & Fertiliser Sectors and Non Power Sectors works out tobe negative at 100% and 85% of target capacity respectively.

The desired selling price to achieve 12% IRR at 100% and 85% targetcapacity works out to Rs. 2298.56/t and Rs. 2559.47/t respectively.



24.14 CAPITAL INVESTMENT, PROFITABILITY & IRR

The Capital Investment, Profitability and IRR at 100% and 85% capacityutilization for LHDs - Departmental & C.M. - Hiring Option as on June 2016 istabulated as under:

Sl.No.

ParametersLHD - Dept. & C.M. - P.H. Option

100% 85%1 Additional Capital Investment (Rs. Crores) 51.82132 Written Down Value (Rs. Crores) 16.92663 Total Capital Investment (Rs. Crores) 68.74792 Total Cost of Production (Rs./t) 2211.25 2432.31

4Average Selling Price for Power Utilities(Including IPPs), Fertilizer & Defence Sectors(Rs./t)

1778.03 1778.03

5Profit / Loss for Power Utilities (Including IPPs),Fertilizer & Defence Sector (Rs./t)

(-) 433.22 (-) 654.28

6Average Selling Price for Non Power Sector(Rs./t)

2117.39 2117.39

7 Profit / Loss for Non Power Sector (Rs./t) (-) 93.86 (-) 314.928 I.R.R. for Power Sector (%) (-) ve (-) ve9 I.R.R. for Non-Power Sector (%) (-) ve (-) ve

10 Desired Selling Price to Yield 12% IRR (Rs./t) 2298.56 2559.47

24.15 CONCLUSION (LHD - Departmental & C.M. - Hiring Option)

The Project Report for Tawa-II U/G Expansion Mine was approved by WCLBoard (1st Stage Approval for the purposes of Environmental & ForestryClearances) in its 227th meeting held on 11.10.2010 with LHDs - Departmentaland Continuous Miner on Partial Hiring for an Additional Capital Investment ofRs. 89.1888 crores and for a target capacity of 0.75 Mty.

The Board accorded approval for entering into coal supply agreement withprospective consumer on cost plus basis to yield 12% IRR at 85% targetcapacity. The Board also accorded approval for initiating formalities regardingGlobal Bid for Introduction of Continuous Miner Technology by Hiring ofEquipment.

WCL vide their letter requested R.D., RI-IV to get the updation of ExpansionProject Report for Tawa-II U/G Expansion Mine done considering the quotedprice of Rs. 1489/t on total production and incremental production basis.

In LHDs - Departmental & C.M. - Partial Hiring Option, the additional capitalinvestment has been estimated as Rs. 51.8213 Crores. In this option, the



mine is expected to incur a loss of Rs. 433.22/t and Rs. 654.28/t at 100% and85% target capacity respectively for Power Sector. The Financial IRR at 100%and 85% target capacity is negative. The desired selling price to yield 12%IRR at 100% and 85% target capacity works out to Rs. 2298.56/t and Rs.2559.47/t respectively.

The economics in this option has been estimated with the quoted price of Rs.1489/t as Hiring Cost to operate continuous miner panel in Tawa-II U/G Mine.As per norms, no escalation of cost component including hiring cost of C.M.panel has been considered in this updated P.R.

25.0 FINANCIAL EVALUATION (INCREMENTAL SCENARIO)

As per the letter no. NGP/WCL/GM(P&P)/221 dated 17.05.2016 of G.M.(P&P), the financial evaluation of this updated Project Report for Tawa-II U/GExpansion Mine has been carried out on incremental basis. For evaluating theP.R. on incremental basis, the financial evaluation for existing scenario (onlyby departmental LHDs) has been worked out for 0.50 Mty capacity till theexhaustion of reserves of LWS and thereafter for 0.36 Mty capacity whileworking in Bagdona Seam. The life of the mine has been worked out as 17years in this scenario.

The details of Existing Scenario i.e., LHDs – Departmental Option are detailedas follows.

25.1 EXISTING SCENARIO (LHDs – DEPARTMENTAL OPTION)

25.1.1 This option pertains to the existing scenario of present Tawa-II U/G Mine. Thebalance extractable reserves available in Tawa-II U/G Mine as on 01.04.2016are 7.504 Mt only (3.959 Mt in LWS and 3.545 Mt in Bagdona Seam).

In this option, It is proposed that existing production of 0.50 Mty (2015-16) willcontinue from 3 operating LHD districts for 2 years from 2016-17. From 3rd

year till 10th year, it is proposed that there will be 2 districts in LWS and Idistrict in Bagdona Seam producing the same quantity of coal i.e., 0.50 Mty.From 11th year to 17th year as the reserves of LWS are exhausted, theworkings will be concentrated only in Bagdona Seam and during these yearsthe production will come down to 0.36 Mty from 3 districts. This drop inproduction from 3 districts of Bagdona Seam is due to less seam thickness ascompared to LWS.

With this proposed planning, the total life in this option will be 17 years. Thebalance extractable reserves in LWS will be exhausted by 10th year of itsoperation and further Bagdona Seam will be operated for another 7 years.

The Liquidation Plan of Existing Scenario (LHDs – Departmental Option)showing year-wise and seam-wise coal extraction for the total life of Tawa-IIU/G Mine is given in the following table:

Sl. Year Production Yearly Remarks



No. from Prodn.(Mt)

1 2016-17LWS 0.50

Drifts from LWS to Bagdona Seam are inprogress. LWS = 3 districts

Bagdona -TOTAL 0.50

2 2017-18LWS 0.43 Drifts from LWS to Bagdona are proposed

to be completed. LWS = 3 districts &Bagdona = Main Trunk Roadways District


3 2018-19LWS 0.38

LWS = 2 LHD districts & Bagdona = MainTrunk Roadways / 1 LHD district


Sl.No.

Year Productionfrom

YearlyProdn.

(Mt)

Remarks

4 2019-20LWS 0.38

LWS = 2 LHD districts & Bagdona = 1 LHDdistrict


5 2020-21LWS 0.38



6 2021-22LWS 0.38



7 2022-23LWS 0.38



8 2023-24LWS 0.38



9 2024-25LWS 0.38

LWS = 2 LHD districts & Bagdona = 1 LHDdistrict. Reserves of LWS are exhausted.


10 2025-26LWS 0.37

Bagdna Seam = 3 LHD districtsBagdona 0.12TOTAL 0.49

11 2026-27LWS -


12 2027-28LWS -


13 2028-29LWS -


14 2029-30LWS -


15 2030-31LWS -


16 2031-32LWS -


17 2032-33 LWS - Bagdna Seam = 3 LHD districts




TOTAL EXTR. RES. (Mt) 7.51

25.1.2 CAPITAL INVESTMENT

Tawa-II U/G Mine has two workable seams namely L.W.S and BagdonaSeam. Development in LWS is almost complete and depillaring of a panel isunder progress.

As development in Lower Workable Seam is almost complete, it is assumedthat Plant & Machinery to produce 0.50 Mty from LWS is available in the mine.Therefore no additional Plant & Machinery is proposed in LHDs -Departmental Option and the P&M available in the mine will cater to LWS andBagdona Seam to produce 0.50 Mty from 3 LHD districts.

Even if few Plant & Machinery are further required, they may be adjusted fromthe neighbouring closing mines of Pathakhera Area

The following table shows the headwise proposed Total Capital Investment(updated as on June 2016) for Existing Scenario (LHDs – DepartmentalOption):

A/CHead

ParticularsLHDs - Departmental Option (Rs. Lakhs)

Total CapitalInvestment

WDV as on01.04.2016

Addl. CapitalInvestment

01 Land 846.19 34.07 812.12

02a) Service Buildings 48.39 48.39 -b) Residential Buildings - - -

03 Plant & Machinery 542.01 542.01 -04 Furniture & Fittings 14.29 14.29 -06 Vehicles 0.47 0.47 -07 Prospecting & Boring 213.43 213.43 -08 Development:

081. Capital outlay in mines 1040.71 368.10 672.6108.2 Roads & Culverts 25.46 25.46 -08.3 Water supply & Sewerage 12.49 12.49 -08.4 EMP & PR Preparation Cost 166.14 153.72 12.42

08.4 (A) Env. Poll. Control Measures 55.75 55.75 -08.5 Scientific Studies - - -

09Net Revenue ExpenditureCap. during Dev. Period

224.48 224.48 -

Total Capital Investment 3189.81 1692.66 1497.15

The head-wise provision of capital investment is shown in Appendix-A. Thehead-wise details of all the items provided in Appendix-A are shown inAppendix-A.1 to A.8.5 of Existing Scenario (LHDs - Departmental Option).



The Additional Capital Investment in LHDs - Departmental Option works out to1497.15 Lakhs. The Written Down Value (WDV) as per Asset Register as on01.04.2016 is Rs. 1692.66 Lakhs. Therefore the Total Capital Investment inthis option works out to 3189.81 Lakhs.

Replacement Capital of Rs. 427.22 Lakhs of usable plant & machinery hasbeen considered in cashflow in this option.

25.1.3 OPENING OF REVENUE ACCOUNT

Tawa-II U/G Mine is already in Revenue.

25.1.4 COMPLETION CAPITAL

As per the latest guidelines, the expected additional completion capital forTawa-II U/G Mine works out to Rs. 16.8809 Crores in Existing Scenario(LHDs - Departmental Option).

25.1.5 MANPOWER & O.M.S.

The total manpower on roll in Tawa-II U/G Mine as on 01.04.2016 is 1045including executives, underground and surface manpower with an existingO.M.S. of 1.920 t.

In Existing Scenario (LHDs - Departmental Option), no additional manpower isproposed.

25.1.6 E.M.S.

The EMS as per the mine cost sheet is Rs. 2760.85 which is considered fordetermining the economics in Existing Scenario (LHDs - DepartmentalOption).

25.1.7 UNIT COST OF PRODUCTION

Appendix-C of Existing Scenario (LHDs - Departmental Option) shows theTotal Cost of Production which is tabulated as under:

Sl.No.

Particulars LHDs - Departmental OptionCost of Production@ 100% Capacity

(Rs./t)

Cost of Production@ 85% Capacity

(Rs./t)1 Salaries and wages 1656.36 1948.662 Stores 181.18 194.563 Power 170.84 180.694 Env. Pollution Control Measues 6.00 7.065 Misc. Expenses (incl. W/D) 207.39 234.616 Mine Closure Cost 9.08 10.687 Administrative Overhead 268.98 316.458 Hiring of Equipment - -



9 Depreciation 51.47 60.5510 Interest on Working Capital @ 14.50% - -11 Interest on Loan Capital @ 11.50% 6.00 7.05

Total Cost of Production 2557.30 2960.31

25.1.8 CONSIDERATIONS IN COST OF PRODUCTION

a) The Cost of Production in this option works out to Rs. 2557.30/t and Rs.2960.31/t at 100% and 85% target production respectively taking the existingcost sheet of 2015-16 into consideration. In this option, the production hasbeen considered as 0.50 Mty upto 10th year of mine life and from 11th yearonwards till the life of mine the production has been considered as 0.36 Mty.

The cost of production for 0.36 Mty to be produced from Bagdona Seam from11th year till the end of mine life, has been arrived on the basis of fixed andvariable component of cost sheet of Tawa-II U/G Mine for 2015-16.

b) For Stores Cost, 40% variable and 60% fixed cost has been consideredbased on Cost Sheet.

c) For Power Cost, 70% variable and 30% fixed cost has been considered basedon Cost Sheet.

d) For Miscellaneous Cost, 40% variable and 60% fixed cost has beenconsidered based on Cost Sheet.

e) For other elements of cost of production, 100% fixed cost has beenconsidered based on Cost Sheet.

25.1.9 GRADE OF COAL & WEIGHTED AVERAGE SELLING PRICE

In Existing Scenario (LHDs - Departmental Option), the annual grade of coaldespatch during its total life of the mine varies from grade 'G8' to 'G7' as perGCV depending upon the year wise location of working panels and seams.

The weighted average sale value considering 98.5% and Rs. 79/t asprocessing charge for dispatching (–) 100 mm size coal works out to Rs.1826.21/t and Rs. 2174.34/t for Power Sector and Non-Power Sectorrespectively.

25.1.10 PROFIT / LOSS

I n Existing Scenario (LHDs - Departmental Option)., the loss with weightedaverage sale value of coal of Rs. 1826.21/t for Power, Defence & FertiliserSector works out to Rs. 731.09/t and Rs. 1134.10/t at 100% and 85% of targetcapacity respectively.

The loss with weighted average sale value of coal of Rs. 2174.34/t for NonPower Sectors works out to Rs. 382.96/t and Rs. 785.97/t at 100% and 85%of target capacity respectively.



25.1.11 FINANCIAL I.R.R. & DESIRED SELLING PRICE TO YIELD 12% IRR

In Existing Scenario (LHDs - Departmental Option)., the financial IRR of theproject for Power, Defence & Fertiliser Sectors and Non Power Sectors worksout to be negative at 100% and 85% of target capacity respectively.

The desired selling price to achieve 12% IRR at 100% and 85% targetcapacity works out to Rs. 2479.25/t and Rs. 2868.49/t respectively.

25.1.12 CAPITAL INVESTMENT, PROFITABILITY & IRR

The Capital Investment, Profitability and IRR at 100% and 85% capacityutilization for Existing Scenario (LHDs - Departmental Option).as on June2016 is tabulated as under:

Sl.No.

ParametersExisting Scenario (LHDs -

Departmental Option

100% 85%

1 Additional Capital Investment (Rs. Crores) 14.9715

2 Written Down Value (Rs. Crores) 16.9266

3 Total Capital Investment (Rs. Crores) 31.8981

2 Total Cost of Production (Rs./t) 2557.30 2960.31

4Average Selling Price for Power Utilities(Including IPPs), Fertilizer & Defence Sectors(Rs./t)

1826.21 1826.21

5Profit / Loss for Power Utilities (Including IPPs),Fertilizer & Defence Sector (Rs./t)

(-) 731.09 (-) 1134.10

6Average Selling Price for Non Power Sector(Rs./t)

2174.34 2174.34

7 Profit / Loss for Non Power Sector (Rs./t) (-) 382.96 (-) 785.97

8 I.R.R. for Power Sector (%) (-) ve (-) ve

9 I.R.R. for Non-Power Sector (%) (-) ve (-) ve

10 Desired Selling Price to Yield 12% IRR (Rs./t) 2479.25 2868.49

25.1.13 CONCLUSION (LHDs - Departmental Option)

In the existing production scenario i.e., LHDs - Departmental Option, theadditional capital investment has been estimated as Rs. 14.9715 Crores. Inthis option, the mine is expected to incur a loss of Rs. 731.09/t and Rs.1134.10/t at 100% and 85% target capacity respectively for Power Sector.The Financial IRR at 100% and 85% target capacity is negative. The desiredselling price to yield 12% IRR at 100% and 85% target capacity works out toRs. 2479.25/t and Rs. 2868.49/t respectively.



25.2 FINANCIAL EVALUATION (Differential Cashflow Scenario)

25.2.1 General Manager (P&P), WCL vide his letter NGP/WCL/GM(P&P)/221 dated17.05.2016 requested R.D., RI-IV to get the updation of Project Report forTawa-II U/G Expansion Mine done considering the quoted price on totalproduction and incremental production basis.

In the financial evaluation for proposed LHDs - Departmental & C.M. – HiringOption and Existing Scenario (LHDs - Departmental Option), the IRR is notbeing generated on total production scenario. Hence as per above letter,Differential Cashflow has been worked out to assess the reduction in lossesby introduction of C.M. Panel.

25.2.2 The following table shows the cashflow & IRR calculations at 100% target forLHDs - Departmental Option, LHDs - Departmental & C.M. Hiring Option andDifferential Cashflow Scenario:

(Amount in Rs. 000s)Year

Existing Scenario (LHDs- Departmental Option)

Proposed Scenario(LHDs - Departmental &

C.M. - Hiring Option)

Differential CashflowScenario

Production(Mty)

Cash flow@ 100%

Production(Mty)

Cash flow@ 100%

Production(Mty)

Cash flow@ 100%

1 0.50 -524805 0.50 -528140 0.00 -33352 0.50 -297904 0.50 -466347 0.00 -1684433 0.50 -284769 0.68 -457568 0.18 -1727994 0.50 -292075 0.86 -392527 0.36 -1004525 0.50 -268562 0.86 -350789 0.36 -822276 0.50 -270412 0.86 -333007 0.36 -625957 0.50 -274576 0.86 -331545 0.36 -569698 0.50 -270578 0.82 -385327 0.32 -1147499 0.50 -276173 0.36 -81040 -0.14 19513310 0.49 -274939 0.36 -66281 -0.13 20865811 0.36 -350482 0.36 -13528 0.00 33695412 0.36 -359121 0.36 6106 0.00 36522613 0.36 -350597 0.13 -18105 -0.23 33249214 0.36 -349165 - 110019 -0.36 45918515 0.36 -349927 - - -0.36 34992716 0.36 -350334 - - -0.36 35033417 0.36 -344465 - - -0.36 344465

31181 -31181TOTAL (-) 5457703 (-) 3308079 (+) 2149624

NPV (-) 2317282 (-) 2126352 (+) 190930IRR (%) (-) ve (-) ve (+) 16.42%

25.2.3 The Differential Cashflow Scenario has been worked out only for 100% targetcapacity as the existing production from Tawa-II U/G Mine is 0.50 Mty and is



consistently producing since past three years and the proposed productionfrom Continuous Miner panel is 0.36 Mty which is the guaranteed productionto be generated by the hiring agency.

25.3 CONCLUSION (Differential Cashflow Scenario)

From the above, it is clear that the net cashflow in existing scenario (LHDs -Departmental Option) considering the notified price of coal for grade G8 to G7coal in the entire life of 17 years works out to (-) 545.77 Crores and the NPV@ 12% is Rs. (-) 231.73 Crores.

However in LHDs - Departmental & C.M. - Hiring Option, the total netcashflow in 13 years life works out to (-) 330.81 Crores and the NPV @ 12%is Rs. (-) 212.64 Crores.

Thus, there is a saving of Rs. 214.96 Crores in LHDs - Departmental & C.M. -Hiring Option as compared to existing scenario (LHDs - Departmental Option).Moreover, the saving in yearly cashflow has been assessed with LHDs -Departmental & C.M. - Hiring Option and the IRR at 100% target capacity forthis difference of cashflow works out to 16.42%.

Thus the Updation of Project Report for Tawa-II U/G Expansion Mine withLHDs - Departmental & C.M. - Hiring Option is achieving more than 12% IRRin Differential Cashflow Scenario at 100% Target Capacity.

************


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