India's major miner, state-run National Mineral Development Corporation (NMDC), has announced that it has clinched a memorandum of understanding (MoU) with West Bengal Mineral Development and Trading Corporation (WBMDTC).

According to the sources, the pact is inked to explore, develop and mine coal at Deocha-Pachami block in Birbhum district, which has a reserve of two billion ton.

The sources further revealed that NMDC will pump about Rs 10 billion for the project. It will be a 50:50 joint venture (JV) with WBMDTC.

The coal block has cover 9.7 sq. km of which mining will be initially done in 3.2 sq km having a reserve of 450 million ton at a depth of 100 metre.

According to the reports, the state government would purchase and offer the land for coal mining in the block.

Scrip of NMDC settled well at Rs 150, up 0.7 percent on National Stock Exchange (NSE) The total volume of shares traded at NSE was 51,237.