Coal news and updates

Govt gives vesting order to Essar Power for coal mine in Jharkhand

Essar Power MP Limited, a subsidiary of Essar Power, signed the coal mine development and production agreement with the government for the Tokisud North coal block in Jharkhand.

Essar Power MP won the coal block in the e-auction of coal mines for Rs 1,110 per tonne.The block, which has all necessary clearances, has extractable coal reserves of 52 million tonne. The company said the block development time will be reduced, as it has the advantage of vital infrastructure such as railway connectivity.

The coal ministry has issued a vesting order to Essar Power MP on March 23.

The company owns and operates 1,200 megawatt (Mw) coal-based power plant at Mahan in Madhya Pradesh, which has been set up with an investment of Rs 8,000 crore. With this coal mine acquisition, the company hopes to operate the Mahan power plant, which has been idling for 18 months owing lack of coal, in a few months.

With Tokisud North coming on stream, 1,200 Mw of power from the plant would soon be available for consumers. The company is in the process of signing long-term power purchase agreements, said the company in a statement.

source: http://www.business-standard.com