Coal news and updates

Coal India's subsidiary Mahanadi Coalfields Ltd (MCL) is in discussion for forming a joint venture (JV) with state-run NTPC Ltd to run the proposed 1,600 megawatt pit-head power plant in Odisha's Sundergarh district, an official said on Monday.

 

The miner's subsidiary is also hoping to get a majority stake of 51 per cent in the proposed joint venture, the official said.

 

"All formalities have been completed. Forest clearance is in the advanced stage. Linkage was obtained. We have tied up with NTPC to run the plant. It will be a joint venture," Coal India's Chairman and Managing Director Anil Kumar Jha told reporters here. If this materialises, the cost of the super critical power plant will be around Rs 13,000 crore, he said.

 

"I think we will have the majority stake because licenses were given in the name of MCL," he said. 

 

According to Jha, the miner is committed to spend Rs 9,500 crore of capital expenditure in 2018-19. 

 

If the project materialises, this expenditure for the year may go up by Rs 1,000-1,500 crore additionally on account of setting up the plant, Jha said. 

 

He also said another pithead power plant was proposed at North Karanpura under Central Coalfields Ltd.

 

Power Finance Consultancy and NTPC was also offering consultancy for the proposed project, he said.

 

Meanwhile, the the miner said that it has reduced its pithead stock to 45 million tonnes with the sudden increase in coal demand from the power sector. 

 

Source: Economic Times