15 coal blocks in Orissa to be allocated soon

The Centre is in the process of allotting 15 coal blocks to merchant power plants (MPP), captive power producers (CPPs), state public sector undertakings (state PSUs) and independent power producers (IPP) in Orissa. The coal blocks will be distributed to the respective parties shortly.

Orissa Energy Minister Surya Narayan Patro said, "Of the 15 coal blocks identified by the Centre for Orissa, 3 have already been issued to MPPs in the Sundergarh district. We are hopeful that orders for the remaining 12 would also be issued shortly."

The amount of reserve that would be utilised from these blocks is currently being calculated.

The Orissa government has already given its estimation over the amount of power that is likely to be generated from the utilisation of the 15 coal blocks.

Says Patro, "Proposals for allotment of coal blocks to Track II power plants are also being considered at the Central level."

According to sources in the Union Ministry of Power (MoP), private developers are being encouraged to set up MPPs to build up energy capacity of the country. These plants are not tied up with long term power purchase agreements (PPAs). They are currently being considered for allotment of captive coal blocks and linkages.

Patro said, "Orissa would be having an MPP of 4,000 Mw generation capacities. This will be part of the country-wide plan of setting up 7 MPPs. The Power Finance Commission (PFC) would shortly float tenders for the MPPs and the lowest bidder would be given the chance."