Haryana Power Generation Corporation Ltd (HPGCL) & the Delhi-based Indraprastha Power Generation Corporation Ltd (IPGCL) have signed an agreement to form a joint venture company (JVC) for developing a coal block at Singrauli in Madhya Pradesh.
The agreement was signed by HPGCL Managing Director Sanjeev Kaushal and IPGCL Managing Director RK Gaur in the presence of Ashok Lavasa, financial commissioner and principal secretary (power) to the Haryana government.
The name of the joint venture entity has been proposed as Yamuna Coal Company Pvt Ltd, subject to the approval by the Registrar of Companies. It has been decided that the first chairman of the JVC, to be based in Faridabad, will be from IPGCL and the CEO would be from HPGCL.
Lavasa said the demand for electricity has been increasing and the development of the coal block will go a long way to meet the power generation requirements of Haryana and Delhi.
He urged the JVC to complete the work in accordance with the schedule, so that the two states can get superior coal to generate power as early as possible. He also said that the state government would extend its support to the companies in order to achieve the target.
The Union Ministry of Coal had allocated a coal block to HPGCL and the Delhi government, under the Government Company Dispensation Scheme.
The total area of the coal block is about 53 sq km and has an estimated reserve of 950 million tonne of coal, which would be enough to generate about 5,000 Mw of power for 25 years, if fully exploited.
The mining will involve both opencast mining and underground mining. According to the preliminary site investigation, 25 per cent of the coal seam is near the surface, while the remaining 75 per cent is underground.
For deep underground mining, the JVC will look at forming a partnership with the public sector undertaking or private players having expertise in the field.
The infrastructure development work required for the mining would be completed within three to four years. Simultaneously, the process of setting up a thermal power plant would also be started to meet the growing requirement of electricity of consumers.
The power generated from this project would be equally shared by Delhi and Haryana while the apportionment of the coal extracted from the block between the two parties shall be decided by the Ministry of Coal.
The JVC has applied for the prospecting licence and forest clearance for topographical and geographical survey. The Provisional Geological Report has already been obtained.
The JVC will carry out the activities of prospecting, exploring developing, selection of mine developer and prospecting coal from the mine and other related activities like clearances, approval and supply of coal/fuels to the power stations of Delhi and Haryana.
The project shall be financed at a Debt/Equity ratio of 70:30 or such Debt/Equity ratio as may be acceptable to lenders. If required by the lender, it shall be obligatory for the parties and their respective governments to give any guarantee and security for raising funds by the JVC.
It was being examined to set up a 2,000 Mw power plant at the pithead location, to avoid the hassle of transportation of coal for power generation.
The projected power generation of 2,000 Mw for 25 years is on the mining of the 25 per cent coal near the surface and can increase substantially by carrying out underground mining.
(The JVC will have minimum four and maximum 15 directors. One of the directors will be the Chief Executive Officer (CEO) appointed by one of the company (HPGCL/ IPGCL), on rotational basis for a period of two years, and one of the directors of the JVC will be the chairman from other company i.e. IPGCL/ HPGCL for two years. )
