Coal news and updates

Essar Power’s Mahan coal block to start production by 2014-end

Essar Power plans to start mining from the Mahan captive coal block at Singrauli in Madhya Pradesh by the end of 2014.

The mine, which was caught in various regulatory hurdles, has now been given preliminary (stage-I) forest clearance subject to conditions by the Ministry of Environment and Forests, said K.V.B. Reddy, Executive Director of Essar Power.
 
The developer will have to submit the proposal to the State Government shortly. It will be forwarded to Centre for further clearances. The complete nod to mine coal from the block is expected by the third quarter of this fiscal. Post clearances, it will require 10-12 months to start production from the mine.
 
In 2006, the Mahan coal block was awarded to a joint venture between Essar Power and Hindalco Industries for captive use for their planned 1,200 MW and 900 MW projects. Both green-field power plants were initially expected to start production by 2011.
 
Currently, the first unit of 600 MW of Essar’s power plant attached to this coal block in running on fuel bought through an e-auction by Coal India. The second unit would also start in the current fiscal, Reddy told Business Line.
 
The company has applied for tapering linkage (temporary supply from domestic mines) from the Government till its captive mine is operational. However, there is no development with regards to getting this alternate fuel source.
 
JHARKHAND PROJECT

For Essar Power’s 1,800 MW Tori power plant in Jharkhand, the Expert Appraisal Committee at the Environment Ministry has recommended clearance for the second unit of the first phase and the second phase.
 
“We expect the final notification soon. Coal for these projects will be supplied from the nearby captive coal blocks at Chakla and Ashok Karkata. We are currently progressing forest clearance and environmental consents required to start mining operations can begin at the two coal blocks,” Reddy said.

The construction progress for Tori I (1,200 MW) and Tori II (600 MW) is 42 per cent and 17 per cent, respectively.

Source: Hindu Business Line