South Eastern Coalfields Ltd. (SECL) has approved the termination of the agreement with Kalyani Coal Mining Pvt. Ltd. (KCMPL), a wholly-owned subsidiary of Sarda Energy & Minerals. The agreement covered re-opening, salvaging, rehabilitation, development, and operation of Kalyani Underground Coal Mines on a revenue-sharing basis. The termination request was made by KCMPL due to the project’s unviability resulting from changes in the mine boundary. KCMPL is taking steps to release the security deposit.
Agreement Termination Approval
South Eastern Coalfields Ltd. (SECL) has approved the request for termination of the agreement executed with Kalyani Coal Mining Pvt. Ltd. (KCMPL), a wholly-owned subsidiary of Sarda Energy & Minerals Ltd. The approval, effective as of February 5, 2026, marks a significant change in the company’s mining operations.
Details of the Terminated Agreement
The agreement between SECL and KCMPL was for the re-opening, salvaging, rehabilitation, development, and operation of Kalyani Underground Coal Mines. This was structured as a revenue-sharing operation. However, due to unforeseen circumstances, the agreement has been terminated.
Reason for Termination
The request for termination was initiated by KCMPL. The primary reason cited was the unviability of the project due to a change in the mine boundary. This change made the continuation of the project unsustainable for KCMPL.
Next Steps
KCMPL is currently undertaking the necessary steps to get the security deposit released following the termination of the agreement. The company is working to ensure a smooth transition and closure of the project.
Source: BSE
