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The Odisha government has pressed for grant of interim coal linkage to meet the dry fuel need of its PSU, Odisha Power Generation Corporation (OPGC).
OPGC is going ahead with its expansion plan that will add two 660 Mw super critical units to its existing station at Banharpalli near Jharsuguda with capacity of 420 Mw.The state-run firm has already started construction on its brownfield expansion. Though it has been allocated Manoharpur and Manoharpur dip side coal blocks for the expansion programme, production from these blocks will not synchronise with the commissioning of the two units scheduled by the last quarter of 2016-17.
“Since the coal blocks were under 'No-Go' category for almost three years, it is expected to take a longer time to commence coal production. To bridge this gap, OPGC needs coal linkage of 16 million tonne per annum for three years from the fourth quarter of 2016-17. OPGC had applied for coal linkage from the Basundhara Group of mines belonging to Mahanadi Coalfields Ltd (MCL). We have urged the Ministry of Coal (MoC) to approve the coal linkage”, said a source at state energy department.
Presently, MCL is facing problem in storing and evacuating coal from the Basundhara Group of mines. Interim coal linkage to OPGC from these mines would help evacuate coal and enable MCL to ramp up output to the desired level.
Meanwhile, the Forest Advisory Committee (FAC) under the Union ministry of environment & forests (MoEF) has recommended grant of Stage-II forest clearance in respect of Manoharpur and dip side of Manoharpur coal blocks allotted to OPGC.
Land acquisition for the coal mine has gained momentum. Out of 1190.60 acres government land sought by OPGC, 1041.76 acres has been sanctioned. Similarly, 825.72 acres of 1362.35 acres of private land has been sanctioned for the coal mine development.
To fund the expansion, the company has tied up for a loan of Rs 8660 crore from Power Finance Corporation (PFC) and Rural Electrification (REC) and executed the necessary agreement with the two Central PSUs.
The balance funding is to be borne proportionately by the Odisha government and US-based AES which hold 51 per cent and 49 per cent stake respectively in the company.Power equipment major Bharat Heavy Electricals Ltd (BHEL) has bagged Rs 4051 crore contract for supply and erection of the main plant of 1320 Mw capacity.The contract is for supply of the main plant consisting of boiler, turbine and generator (BTG) at an all-inclusive firm price of Rs 3748.94 crore and erection of the main plant at Rs 302.06 crore.The Balance of Plant (BoP) contract valued at Rs 1573 crore was bagged by BGR Energy Systems. The contract includes supply, erection and commissioning of the BoP for additional generation capacity.
