Adani Enterprises Ltd., the flagship company of Ahmedabad-based diversified business conglomerate Adani Group, has been selected as a mine developer and operator (MDO) for the Chendipada coal block in Orissa, which has an annual mining capacity of 40 million tonne per annum (MTPA). Adani has been selected through a global competitive bidding.
Adani will undertake development and operation of the coal block, which includes land acquisition, preparation of mine plan, approvals and clearances, coal mining, setting up of coal washery, establish railway siding and deliver washed coal to end user at the designated power stations in UP, Chhattisgarh and Maharashtra.
Billionaire Gautam Adani promoted Adani Enterprises is also required to setup a power plant with a capacity of about 2000 Mw for utilising the coal washery rejects in joint venture with UCM. "Adani Enterprises will hold 89 per cent stake in the power project and UCM 11 per cent," the company said in a statement.
Investment of around Rs 10,000 to Rs 11,000 crore would be required for this project, including development of 2000 Mw power project.
Chendipada coal block in Orissa's Talcher coalfield with estimated reserves of about 1600 million tonnes was jointly allotted to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL), Chhattisgarh Mineral Development Corporation Ltd. (CMDC) and Maharashtra State Power Generation Company Ltd. (Mahagenco) for captive mining of coal. A joint venture company UCM Coal Company Ltd. (UCM) was formed by UPRVUNL, CMDC and Mahagenco for development and mining of the Chendipada Coal block.
It may be mentioned here that Adani Group is already operating as MDO in various coal blocks in Orissa and Chhattisgarh with total mining capacity of 70 MTPA.
With Chendipada coal block, Adani has total 110 MTPA of coal mining contracts in India which will make it one of the largest mining company in private sector.
The coal production will commence within 42–48 months times from these mines, this coal will be used as fuel by various thermal power stations in Maharashtra, Uttar Pradesh, Rajasthan and Chhattisgarh.
