The issue was raised by Odisha's Energy Minister Pranab Prakash Das while attending the two-day power ministers' conference held in South Goa on June 16 and 17.
Stating that OPTCL in 2013 was allocated underground Tentuloi Coal Block situated in Talcher Coalfields in Dhenkanal district, Das said: "Given the available resource at a depth, this block was not technically and economically viable for open cast mining. Hence, the coal block was surrendered by OPTCL."
The Centre has reduced the share from 90:10 to 60:40, the minister said.
He said by curtailing fund allocation against detailed project reports of the state by Rs 2,417.27 crore, the scope towards 'system strengthening and connecting the un-connected households' has diminished.
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The Clean Environment Cess has been increased to Rs 400 per tonne of coal from the existing Rs 200 per tonne in the Union Budget for 2016-17 resulting in collection of about Rs 6,400 crore from Odisha in order to promote renewable energy development in other states without any commensurate benefit to Odisha, he said.
The minister said at least 60 per cent of the proceeds should be shared with the state government to deal with negative externalities.
"This will ensure sharing of cost and benefits by states in an equitable manner," he said.
The minister said allocating high-cost thermal power to Odisha, which is already surplus in power generation, may unnecessarily put burden on the poor consumers of the state by paying huge fixed cost even without availing power.