With the hope of securing coal linkages from the Union coal ministry for 5 IPPs proposing to set up thermal plants in the state by 11th Plan dwindling, the Orissa energy department has now decided to approach chief minister Naveen Patnaik in getting the task done from the Centre.
The five IPPs still in the grip of acute coal linkage crisis and not been able to make any progress on their projects are the Kolkata-based CESC Ltd, Mahanadi Aban, Essar, Bhushan Thermal Power and Visa Atgarh Thermal Power.
The meeting of standing linkage committee ( SLC) on coal has not taken place in the past four months.
Highly-placed Orissa energy department officials, while refusing to disclose the possible reasons for these 5 IPPs not receiving coal linkages, may be the UPA government, which is already on an election preparation mode, is not keen to take an early decision on the matter.
Proposed IPPs, which were allotted coal blocks, are also keeping their fingers crossed as they estimate mining and extraction of coal would take a minimum of five years.
Most of the coal blocks allotted in the Talcher and Ib Valley coalfields have been distributed among different parties. There is no block which has been singularly given.
State transmission agency Grid Corporation of Orissa ( Gridco) is also concerned over the development. Says Gridco director ( commercial ) A C Mallick, " I will request the state energy department to take up the matter at the highest levels in organising coal linkages for the IPPs." CESC officials have approached Gridco authorities in resolving the issue fast.
“It is a helpless situation for the 5 IPPs and I am aware of it. We have repeatedly written to the coal ministry for giving linkages to them but nothing has transpired. Our last hope is using the good offices of the chief minister and getting the job done.”, said state energy minister S N Patro.
Patro pointed out all the 5 IPPs are ready with their land acquisition and survey, soil testing and financial closures. They have promised commencement of construction work latest by 2009, provided they receive the coal linkage by the end of 2008. During the past fortnight, the SLC meeting had been postponed twice making things difficult for the IPPs.
Says a senior executive of CESC, "It is over six months and we are yet to receive coal linkage from SLC. The Orissa government expressed doubt on our commitment to the project. The confusion has been removed and we are awaiting coal linkage". Said Patro, “5 IPPs have apprised me of their difficulties. We appreciate they are facing coal linkage problems".
CESC requires 4.5 to 5 MTPA of long term coal linkage for its 1000 Mws power plant. Mahanadi Aban has requested for 6.3 MTPA linkage for its 1030 Mws plant. Essar has applied for 5.4 MTPA of coal from Mandakini A block for its 2000 Mws plant. CEA has recommended its case to MoC for coal linkage.
Bhushan and Visa Athgarh are awaiting MoC's clearance for their 2000 Mws and 1000 Mws plant respectively. Both the companies have signed MoUs and PPAs with the state government for ensuring coal supply in future.
Bhushan's requirement is around 15 MTPA and Visa wants 6.2 MTPA. Bhushan has also signed a fuel supply agreement ( FSA) with CMDC, a Chattisgarh government enterprise for supply of coal.
According to a Mahanadi Aban executive, " Everything is held up in the absence of coal linkage. Only the state government can bail us out from such a situation". Orissa has signed 13 MoUs with IPPs in 2006 aggregating generation capacity of 16,000 Mws.
