Coal news and updates

Odisha to get Rs 45,630 cr from first round of coal auctions

The first round of coal auctions is likely to fetch the Odisha government a revenue of Rs 45630 crore. The projected amount would accrue to the state government by way of e-auction proceeds, royalty fees and fixed reserve price, Prafulla Mallick, minister for steel & mines informed the state assembly via a written reply. The projected revenue is set to flow to the state coffers in a span of 25-30 years.

In the first tranche, the central government has agreed to pay Rs 12.52 crore to Odisha. So far, nine coal blocks from the state have been put to auctions. All blocks have been earmarked for the power sector. The Coal ministry has notified 10 more coal blocks for auctions in the third tranche including the Jamkhani coal block in Odisha. All these blocks are for unregulated sectors.

Out of the nine blocks, successful bidders have been declared for three blocks- Talabira, Mandakini and Utkal C. GMR Chhattisgarh Energy Ltd has emerged as the successful bidder for Talabira coal block. Mandakini block has gone to Mandakini Exploration and Mining Ltd, a joint venture (JV) between Monnet Ispat & Energy and Jindal India Thermal Power Ltd.

The JV company outbid Adani Power (which had submitted two bids for the block), GMR Energy, Jindal Power, and Wigeon Commotrade Pvt Ltd to bag the mine which has 322 million tonne of reserve and annual production capacity of 7.5 million tonne.

This coal block was earlier owned by Monnet Ispat & Energy Ltd, Jindal Photo Lab and Tata Power Company before being put up for auction on the basis of the Supreme Court order that cancelled all coal blocks allocation in the country.

Monnet Power Company which bagged the Utkal-C block is set to surrender it citing that the proposed changes in electricity tariff rules will render the project unviable.

Only one state PSU- Odisha Coal & Power Ltd (OPCL), a 51:49 joint venture (JV) between OPGC and another state entity Odisha Hydro Power Generation Corporation (OHPC) has been allocated the Manoharpur and Manoharpur dip side coal blocks by the Ministry of Coal.

Two more coal blocks- Dulanga and Naini have been allocated to NTPC Ltd and Singareni Collieries Company Ltd respectively. Four more coal blocks — Mahanadi, Machhakata, Chhendipada and Chhendipada II have been earmarked by the Coal ministry for allotment to government companies/corporations under the provisions of Coal Mines (Special Provisions) Act, 2015.

However, these four blocks are yet to be given away to any state run firm. The Odisha government has made a strong plea to the Coal ministry to allocate Chhendipada and Chhendipada II coal blocks in favour of Odisha Thermal Power Corporation Ltd (OTPCL), 50:50 joint venture between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC).

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