The Tamil Nadu Electricity Board (TNEB) has floated a new company along with the Maharashtra State Mining Corporation (MSMC) to develop a coal mine and to set up up a 2,000 mega watt (Mw) power plant in Chhattisgarh. The JV company expects an investment of around '15,000 crore in the projects. Besides, the state electricity board also formed a JV with three state-run mining corporations to develop coal mine in Orissa.
Speaking to Business Standard, C P Singh, chairman, TNEB said TNEB and MSMC floated a company called Mahatamil Collieries Ltd (MCL), with a shareholding ratio of 74:26 of TNEB and MSMC.
The JV company was formed for exploring, developing, mining and supplying coal from the Gare Pelma II coal block in Mand Raigarh district, Chhattisgarh. The area is around 24.95 sq km and it is in triangular in shape, the maximum length and width of the sector are 21.75 km and 3.75 km respectively.
Apart from developing a coal mine, the company will also set up a power plant with a capacity of 2,000 Mw in Chhattisgarh.
“It is better to use the local coal for producing power.”
A contract for the detailed exploration was awarded to public sector company Mineral Exploration Corporation Ltd, he added.
“Preliminary information stated that this mine will have a resource of 16 million tonnes of coal,” said Singh. Reserves in the mine is estimated to be around 768 million tonnes.
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MCL has called for tender for selection of mine developer and operator for exploration, development, mining and supply of coal, which will be used to generate power.
“Total outlay for the project is around '15,000 crore and funding is being worked out,” said Singh.
He added, the board also floated a joint venture along with the mining corporations of Orissa, Assam and Meghalaya to develop a coal mine in the state of Orissa. “Its in preliminary stage, we estimated the mine can supply 16 million tonnes of coal from this mine. Project cost and other prospects are being worked out,” said Singh.
TNEB’s coal requirement is around 20 million tonnes, of which linkage has been provided for 15 million and inprinciple approval has been given for another 12 million tonnes, said Singh.