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Odisha seeks alternate coal block for OTPCL

Tentuloi block has enough coal reserve at 1,234 mn tonne, but being underground block, coal extraction would push power generation up by 25%...


With the Tentuloi coal block turning out to be unviable for the 2,400 Mw coal-based power plant proposed by its PSU Odisha Thermal Power Corporation Ltd (OTPCL), the state government has sought an alternate coal block from the Coal ministry.

Tentuloi block has adequate coal reserve of 1,234 million tonne to cater to the OTPCL project. But it being an underground block, coal extraction from there is set to push cost of power generation by 25 per cent.

Chief minister Naveen Patnaik has written to the Coal ministry pitching for a suitable coal block for OTPCL, said a source at the energy department. In his letter, Patnaik suggested that the ministry can consider award of any of the five de-allocated coal blocks in Odisha to OTPCL. The coal ministry had de-allocated New Patrapara, Baitarani West, Utkal-D, Mandakini-B and Naini blocks in view of their unsatisfactory performance. Of these Utkal-D and Mandakini-B were allocated to Odisha Mining Corporation (OMC) while Baitarani West was awarded to Odisha Hydro Power Corporation (OHPC) jointly with PSUs of other states. The rest two blocks were allocated to private firms.

Though the state government had sought Chandrabila coal block for OTPCL, the coal ministry awarded the block to NTPC instead. Coal from the Tentuloi block allocated to OTPCL, could be excavated only after digging 300 metres and this was bound to escalate coal production cost, ultimately impacting power generation cost.

The 2,400 Mw project of OTPCL proposed at Kamakhyanagar in Dhenkanal district and taken up a cost of Rs 10,000 crore, needs 1,969.78 acres of land in all which includes 987.77 acres of government land and 83.94 acres of forest land and 982.015 acres privately owned. OTPCL is a 50:50 joint venture between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC). Notification under section 6 (1) has been issued. It has been decided that OTPCL will form its own project management team with skeletal manpower consisting of personnel having project implementation experience in large coal-based power plants.

The state government has already given administrative approval for acquisition of 982.015 acres of private land at the project site. The private land is to be acquired in 10 villages Aluajharana (19.68 acres), Annapurnapur (447.30 acres), Bijadiha (20.81 ares), Bhagirathapur Sasana (15.2 acres), Dhobabaheli (5.89 acres), Kateni (84.24 acres), Kantapala (45.55 acres), Kusumajodi (244.04 acres), Mahulapala (24.98 acres) and Anlabereni (74.32 acres).The total land required for the project will be procured by OTPCL.

OTPCL has got water allocation for the project and recently, the inter-ministerial committee (IMC) on coal had recommended the Tentuloi coal block with 1,234 million tonne reserves in favour of it.

Entire power generated from the power plant will be procured by Gridco, the state owned bulk power purchaser, as per the tariff determined through the bidding process.

Source: Business Standard