In February, 1978 Government of India sanctioned the Second Lignite Mine of capacity 4.7 MT of lignite per annum and in February 1983, Government of India sanctioned the expansion of Second Mine capacity from 4.7 Million Tonnes to 10.5 Million Tonnes. Further capacity expansion to 15 MT/A was sanctioned by Government of India in October 2004 and is presently under implementation.Unlike Mine-I, Mine-II had to face problems in the excavation of sticky clayey soil during initial stage. The method of mining and equipment used are similar to that of Mine-I.
This Mine is located 5 kms south of Mine-I, spread over an area of 26 sq.kms. with 390 million tonnes reserves. The initial mine cut was started in April 1981. The lignite seam was first exposed in September 1984 and regular lignite mining commenced from March 1985. The overburden thickness varies from 50-100 m and the lignite thickness varies from 8 to 22m. The average overburden to lignite ratio is 5m3 to a tonne. The lignite production in this mine meet the fuel requirements of Thermal Power Station-II. The method of mining and equipment used are similar to that of Mine-I.
The seam is the same as of Mine-I and is contiguous to it. The lignite seam in Mine-II was first exposed in September 1984 and the excavation of lignite commenced in March, 1985. The Last overburden system (surface bench system) under the expansion scheme was commissioned on 15.12.1991. The lignite excavated from Mine-II meets the fuel requirements of Thermal Power Station-II.