Don’t miss the latest developments in business and finance.

CESC, Essar Power seek government intervention for coal block

Image
BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 29 2013 | 2:54 AM IST

The Kolkata-based CESC Limited and Mumbai based Essar Power have sought the intervention of the Orissa government to secure coal blocks from the Centre.

These Independent Power Producers (IPPs) requested the state government to take up the issue of allotment of coal blocks with the Union ministry of coal for expediting their respective projects.

They argued that in the absence of coal linkage, they find it difficult to attain financial closure for their projects.

While CESC proposes to set up a 1000 Mw thermal power plant at Neulapoi in the Dhenkanal district at an investment of about Rs 4000 crore, Essar Power is setting up a 1000 Mw plant at Paranga in Angul district at an investment of about Rs 8000 crore.

The IPPs sought the support of the state government during a review meeting held here under the chairmanship of chief secretary Ajit Kumar Tripathy regarding the progress of the IPPs.

Sources said, though CESC requires 1049 acres of land for its project, the land acquisition is yet to start. However, the state government’s approval for the notification under section 4 (1) of the land acquisition act is expected soon.

More From This Section

The company requires 4.53 million tonne coal per annum (MTPA) and has applied for coal block accompanied with the recommendations of the Orissa government and Central Electricity Authority (CEA).

Essar Power which requires 5.4 million tonne coal per annum for its power plant, needs 1070 acres of land. However, the actual acquisition is yet to start. Sources said, the 4 (1) notification has been completed for acquisition of private land and the process will start soon.

Talking to media persons after the meeting, Tripathy said, the state government hopes the IPPs to generate about 17,000 mw by end of 2011.While the projects of GMR Energy (1050 Mw) and Jindal India Thermal Power (1200 mw) have made good progress in terms of land acquisition, the process is yet to take off in case of other projects.

The Jindal India Thermal has obtained long term coal linkage for 250 mw from the ministry of coal and hopes to commission the first phase by December 2011. GMR Energy also hopes to commission its plant by 2011, he added.

Tripathy reviewed the progress of seven IPPs pertaining to the land acquisition, water, coal linkage and financial closure on Friday. The progress of GMR Energy, Jindal Power, Tata Power, KVK Nilachal, Mahanadi Aban Power Company, Essar Power and CESC was reviewed.

The chief secretary advised the power companies to adopt ITIs or ITCs in their areas of operation to improve the skills of the locals. The utilities agreed to the proposal.

Also Read

First Published: Nov 10 2008 | 12:00 AM IST

Next Story