Coal news and updates

Odisha Power Generation Corporation (OPGC), a 51:49 joint venture (JV) company between the Odisha government and US-based energy major AES Ltd, will seek extension of bridge linkage of coal till 2020-21 to feed its two 660 Mw upcoming super critical units under its ongoing expansion at Ib valley plant near Jharsuguda.

Though OPGC has been awarded the Manoharpur and Manoharpur dip side coal blocks, it has applied for bridge linkage since power generation from the expanded units was expected to commence earlier than coal mining. Coal production from the two mines is set to begin in April 2019 and reach peak capacity by 2021. Till then, OPGC needed the bridge linkage.

"The bridge linkage for OPGC expansion has been finalised. The coal allocation is likely to be from the Lakhanpur mines of Mahanadi Coalfields Ltd (MCL)", said Rajesh Verma, principal secretary (energy) and chairman, OPGC.

Odisha Coal & Power Ltd (OCPL), a 51:49 JV between two state run entities - Oidsha Power Generation Corporation (OPGC) and Odisha Hydro Power Corporation (OHPC) would invest Rs 1,500 crore on development of the Manoharpur and dip side of Manoharpur coal blocks. Annual coal production capacity of the Manoharpur and dip side of Manoharpur coal blocks is pegged at eight million tonne. Total reserve of the two coal blocks is 531 million tonne.

Both the coal blocks have been allocated to OPGC under PSU dispensation route to cater to its 1320 (2x660) Mw expansion at Ib valley. OPGC incurred an expenditure of Rs 2,015 crore on its expansion during 2015-16.

Till the end of 2015-16, construction work on 1,320 Mw expansion was 58 per cent complete. In this financial year, power plant construction is expected to reach 85 per cent completion.

OPGC is investing Rs 11,547 crore on expansion, which also includes cost of other components like coal block development and dedicated rail corridor.

 

The state owned generator has already started construction work on its expansion.To fund the expansion, OPGC has already tied up funding of Rs 8,660 crore from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), by executing a loan agreement with the two central PSUs. The balance funding is to be borne proportionately by the Odisha government and AES.

Source: business-standard.com