Tentuloi coal block was allocated to OTPCL, which is setting up a 3,200 MW super critical thermal power plant in Dhenkanal, as no other alternative block was available at that point of time, Patnaik said in a letter to Modi.
As the cost of extracting coal from this deep cast mine would be prohibitively high, Union Ministry of Coal had been requested several times for cancellation of the block, the chief minister said, referring to the letters he had written to the Coal Minister in September 2013 and November 2015.
Stating that Odisha has the largest deposits of power grade coal in the country, Patnaik said the demand for power in the state is growing rapidly.
He added that Baitarani East Coal Mine, having a tentative reserve of about 600 MT, has been allocated to MCL but is situated far away from the company's operational area.
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On the other hand, it would be easier on the part of the state PSU to develop this coal mine as it borders Baitarani West Coal Mine, recently allocated to the state government.
Alternatively, Karadabahal and Brahmanibil Coal Blocks, which are located nearby and have adequate reserves, may be considered for allocation to OTPCL, he said.