The country's largest importer of coal, Adani Enterprises, today said it has bagged the rights to develop a coal block in Orissa, which has estimated reserves of 1.6 billion tonnes.
The diversified conglomerate will also develop a 2,000-Mw power plant as part of its deal with the PSU consortium that selected the billionaire Gautam Adani-led company as Mine Developer and Operator (MDO) for the Chendipada coal block.
"Adani Enterprises has been selected as Mine Developer and Operator (MDO) for development and operation of the Chendipada coal block (Orissa) through global competitive bidding," the diversified group said in a statement here.
The block has estimated reserves of 1.6 billion tonnes and an annual production capacity of 40 million tonnes per annum (MTPA).
"Coal production will commence within 42-48 months' time from these mines. This coal will be used as fuel by various thermal power stations in Maharashtra, Uttar Pradesh, Rajasthan and Chhattisgarh," it said.
The Coal Ministry had allotted the block in the Talcher coalfield, Orissa, jointly to Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL), Chhattisgarh Mineral Development Corporation (CMDC) and Maharashtra State Power Generation Company (Mahagenco) for captive mining of coal.
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"A joint venture company, UCM Coal Company (UCM), has been formed by UPRVUNL, CMDC and Mahagenco for development and mining of the Chendipada coal block," the company said, adding that the JV company had invited global bids to develop the reserves. Financial details of the deal could not be immediately ascertained.
As part of the deal, Adani will undertake development and operation of the coal block, it said.
"(The work) includes land acquisition, R&R, preparation of mine plan, approvals and clearances, coal mining, setting up of coal washery, establish railway siding and deliver washed coal to end-users at the designated power stations in UP, Chhattisgarh and Maharashtra," the statement added.
Adani is also required to set-up a power generation project of about 2,000 Mw capacity as part of the deal with UCM. Adani will hold an 89 per cent stake in the power project, while the remaining will stay with the PSU consortium.
Adani Enterprises, which is the largest coal importer in India, is expanding its domestic base aggressively through the MDO business model.
"In the recent past, Adani group has already won competitive bidding tenders as MDO for total mining capacity of 70 MTPA of Mahaguj Collieries, Rajasthan Rajya Vidyut Utpadan Nigam and Chhattisgarh State Power Generation Co for various coal blocks in Orissa and Chhattisgarh," it added.
Adani Enterprises further said that with the latest deal, it will have 110 MTPA of coal mining contracts in India, "which will make it one of the largest mining company in private sector."