MPTradco, the state’s power trading corporation, has initiated the process of developing the Bansagar thermal plant, leading the Korba-based Morga-I coal mines in neighbouring Chhattisgarh to now go to the partner of the 1600-Mw project in Madhya Pradesh.
As of now, MPTradco is in the process of obtaining environment- and pollution-related clearance from the Union government for the project in the state’s eastern Shahdol district bordering Chattisgarh.
Earlier, the Madhya Pradesh State Mining Corporation (MPSMC) had entered into a joint venture with KSK Energy Ventures Limited and Infrastructure Development Finance Corporation, but that was later cancelled on certain “contradictions” with Central government guidelines.
MPSMC won the case after a petition filed by KSK last year. A well-placed source in the government said it would now go with the Bansagar thermal power project partner for Morga-I mines. “The partner may be a government agency or a private company,” he told Business Standard.
To be developed at Tikuratola village, Bansagar project will be based on super-critical technology with units of 800 Mw. The state cabinet had in July decided to reserve Morega-1 coal block and funds at the rate of 14 per cent for acquiring land for the project, the source pointed out.
Morga-I block, which is located in Chhattisgarh’s north-central Korba district, has approximately 250 million tonnes of coal reserves. It was awarded to state mining corporation in 2006 with 51 per cent of cashless equity. “The potential partner will hold 49 per cent in it. However it (partner) will have to pay 200 per cent facilitation fee linked with royalty. The corporation will have rights to use the surplus coal reserves,” the source added.
Morga-I block has open-cast and underground excavation options. The open-cast mines have sufficient coal to feed 1500-2000 Mw power plant for another 25-30 years.
A senior official with the Bansagar project said MPTradco would — after all clearances — float soon tenders to invite bidders for the project. “It will be open to both government and private companies,” he told Business Standard.
The project, he said, was expected to come up by 2015. We are in the process of obtaining environment clearances from the Union Ministry of Environment and Forests. Only one village needs to be rehabilitated for the project. A separate team of staff has been deployed for land acquisition process. “The water source will be the Bansagar dam. The coal will come from Morga-I mines,” he added.
Madhya Pradesh is facing a power shortage of 1500-2000 Mw. The peak-hour demand ranges between 6500-7500 Mw against availability of 5000-5500 Mw. The government is working to ensure regular power supply by 2013 across the state.
