KNR Constructions JV Secures Mega ₹3,361 Crore Coal Mining Project in Chhattisgarh

KNR Constructions Limited (BSE: 532942, NSE: KNRCON) has announced that its joint venture, M/s KNR-SIML (JV), has officially received a massive Letter of Acceptance (LoA) for extensive coal mining operations in Chhattisgarh. The contract is valued at ₹3,361.11 crores (excluding GST) and was awarded by South Eastern Coalfields Limited (SECL).

The joint venture is led by KNR Constructions Limited holding a majority 51% stake, with Sushee Infra & Mining Limited holding the remaining 49% stake.

The mega project is situated at the Kusmunda Open Cast Project (OCP) within the Kusmunda area of Chhattisgarh. Executed on an Item Rate basis, the entire contract spans a long-term duration of 2,920 days (approximately 8 years).

Comprehensive Breakdown of Approved Works

The contract is divided into distinct operational jobs targeting overburden removal, mechanical coal cutting, loading, and logistics:

1. Overburden (OB) Removal Operations

The contract mandates the excavation, transportation, and disposal of a combined 258.15 million cubic meters (Mcum) of overburden material, maintaining a minimum required pace of 88,410 cubic meters per day (QPD).

Soft Soil Excavation (Job 1.A): Hiring heavy earthmoving machinery (HEMM) like excavators, tippers, and dozers to clear 11.97 Mcum of topsoil/silt above coal seams without the need for drilling.

Hard Strata Excavation (Job 1.B): Utilizing drills and heavy machinery to excavate, load, and dump 246.19 Mcum of heavy rock, hard layers, and inter-burden partings situated between active coal seams.

2. Advanced Coal Cutting & Extraction (Job 2)

Scope: Deploying high-capacity Surface Miners equipped with built-in water spraying systems to suppress hazardous coal dust.

Execution: Mechanical cutting and breaking of coal from various active seams down to a manageable lump size (under 100 mm). Notably, this extraction will completely bypass traditional drilling and blasting methods.

Volume & Target: Total target of 142.89 million tonnes (Te) of coal, ensuring a minimum daily output of 48,934 tonnes per day (TPD).

3. Mechanical Loading & Site Logistics (Jobs 3.A & 3.B)

Loading: Utilizing pay-loaders for mechanical coal handling directly at the various coal faces (Seams D, E&F, UK, LK, and LK-B).

Transportation: Deploying tipper fleets to transport the extracted 142.89 million tonnes of coal from the pits to designated critical infrastructure nodes, including TRS-1, TRS-2, Surface Stock-heap No. 2, Gevra Railway Siding, NK-2 Siding, and in-pit belt conveyor receiving lines.

Shares of KNR Constructions Limited was last trading in BSE at Rs. 130.15 as compared to the previous close of Rs. 129.65. The total number of shares traded during the day was 47999 in over 525 trades.

The stock hit an intraday high of Rs. 131.80 and intraday low of 128.40. The net turnover during the day was Rs. 6240260.00.

Source : Equity Bulls

Keywords

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