Public sector major NMDC Limited has signed a MoU with the West Bengal Mineral Development & Trading Corporation Ltd (WBMDTC) to explore, develop and mine Deocha-Pachmi coal block in Birbhum.

The area stretches to about 9.7 sq km, but initially, mining will be carried out only in 3.2 sq km area, which has a coal reserve of 450 million tonne, 100 metre deep. Both companies shall have 50-50 stake in the venture.

The MoU was signed in the presence of Chief Minister Buddhadeb Bhattacharjee and Steel Minister Ram Vilas Paswan, by NMDC Director (Technical) P S Upadhyay and WBMDCTC CMD Arun Kumar Sen.

Chief Minister Buddhadeb Bhattacharjee said that with the commencement of coal extraction from the block, problem of coal shortage in the power sector would be resolved. He also thanked the Union minister of steel and chemical fertilizers, Mr. Ram Vilas Paswan for investing Rs 15,000 crore in Iisco modernization.

Meanwhile Mr. Rana Som, CMD, NMDC Ltd stated, "This is one of the five biggest coal blocks in the country .... NMDC is in a fast track expansion and diversification mode. We would make initial investment of about Rs 1,000 crore for the project."

NMDC has also started exploration process for two coal blocks in Madhya Pradesh. The land for coal mining in the block will be acquired and provided by the State Government.