Even as debate has kicked off across the country to assess the effect of Supreme Court decision delivered yesterday, the power producers in coal-rich Chhattisgarh have reason to smile. Almost all the producers barring Jindal Steel and Power Limited (JSPL) did not have captive coal blocks to feed the plant.
The power plants that had started operation in the state had installed capacity of about 15,000-Mw. The major players include state-owned National Thermal Power Corporation (NTPC) and Chhattisgarh State Power Generation Company (CSPGC) and KSK Energy, Lanco, DB Power among the private sector.
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The companies had been granted coal linkage that had been feeding its plant and saved it from the possible impact of apex court order. Though the CSPGC and DB Power had been allotted coal blocks in the state, it had not been in operation and both were getting coal in linkage.
The power plants located in the state had been getting coal supply under linkage from South Eastern Coalfields Limited (SECL) - the largest coal producing company in the country. SECL, which is the flagship entity of the Coal India Limited (CIL), has mines straddling across Chhattisgarh and neighbouring Madhya Pradesh.
"The state will not have any impact in power production following the court verdict," chief minister Raman Singh said. The decision was crucial, he said, adding that but the impact in Chhattisgarh would be minimal and the possibility of power tariff hike in the state was bleak.
Following the court ruling, 37 coal blocks allotted in Chhattisgarh over a period of two decades had been cancelled. Of the 37 blocks, 24 coal blocks had been allocated to 50 private companies while 13 coal blocks were given to nine private companies.
The biggest jolt among the corporate in the state came to JSPL that owned coal block to feed its 1200-Mw power plant located in Raigarh district. The company was selling power to different agencies.