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Unavailability of tapering coal linkage is posing a hurdle to the proposed expansion plan of Odisha Power Generation Corporation (OPGC), the only state-owned thermal power producer.
OPGC operates a 420 Mw capacity power station at Banharpalli near Jharsuguda and has firmed up plans to add two 660 Mw super critical units at the site. Despite achieving a major breakthrough in its expansion programme in the form of securing loan assistance of Rs 8,660 crore and awarding BTG (bolier turbine generator) contract valued at Rs 4,051 crore to Bharat Heavy Electricals Ltd (Bhel), the expansion continues to be mired in uncertainty with no immediate coal supplies in sight.
Though Manoharpur and dip side of Manoharpur coal blocks were allocated for the OPGC project, it is projected that the coal mine would be in a position to achieve full capacity production two years after the commissioning of the power plant.
Confronted with the problem of coal unavailability, the state government had written to Mahanadi Coalfields Ltd (MCL) to provide interim coal requirement to the tune of 16 million tonnes to OPGC. But the matter is now pending with the Ministry of Coal (MoC).
“MCL is ready to offer linkage to OPGC from its Basundhara coal mines. But the linkage has to be cleared by MoC which is still sitting over the proposal,” said an official source.
Venkatachalam Kuppusami, managing director, OPGC said, “The issue of tapering coal linkage for OPGC was discussed at the last standing linkage committee meeting of MoC. The ministry had asked us to put it up as a separate agenda and has assured to deliberate on in the next coal linkage committee meeting. Though MCL is ready to provide the linkage, the decision has to be taken by the MoC.”
OPGC’s coal requirement has been projected at four million tonnes (mnt), eight mnt and four mnt in 2016-17, 2017-18 and 2018-19 respectively.
The expansion plan of OPGC, a 51:49 joint venture between the Odisha government and US-based AES Corporation Ltd, involved addition of two supercritical units, each of 660 Mw, at a cost of Rs 11,547 crore, which also includes cost of other components like coal block development and dedicated rail corridor. The state utility in November 2012, tied up funding of Rs 8,660 crore from Power Finance Corporation (PFC) and Rural Electrification (REC), by executing a loan agreement with the two Central PSUs. The balance funding is to be borne proportionately by the Odisha government and AES.
