A green panel has deferred its decision on granting environment clearance to Mahanadi Coalfields (MCL) for setting up of a Rs 334.72 crore coal washery in Odisha and asked it to get forest clearance first, and also sought other inputs.

MCL has proposed setting up of a coal washery with 10 million tonne per annum capacity in Basundhara area of IB-Valley Coalfield in Sundergarh district.

The Expert Appraisal Committee (EAC) of the Union Environment Ministry recently examined the MCL?s proposal and sought more information from the company before giving green signal for the project.

As per the proposal, the company wants to set up the project in an area of 43.90 hectare, which comprises 29.41 hectare forest land and 4.33 hectare government non-forest land and 10.16 hectare tenancy land.

The proposed Basundhara coal washery project is estimated to be set up at a cost of Rs 334.72 crore. The company has proposed to meet the raw coal requirement for the project from Kulda open cast mine located in Basundhara area.