Over 150 power cos queue up for Chhattisgarh coal

With power companies announcing big plans for Chhattisgarh, there is a mad rush for coal mines in the state. The Centre has received about 750 applications for coal blocks from more than 150 companies.

"The Centre has sought the recommendation of the state before the screening committee of the coal ministry takes a final decision on the allocation of the blocks," a state government official said.

The majority of the coal blocks are in Korba and Raigarh districts. The state has reserves of 39,975 million tonnes of coal "" about 16.13 per cent of the total reserves in the country.

As of now, the state government has inked pacts for a total investment of Rs 80,000 crore in the power sector alone. After the execution of the pacts, Chhattisgarh will produce 20,000 Mw by 2011.

Though the state authorities feel the state has the potential to produce up to 50,000 Mw, Chhattisgarh has already expressed confidence in its ability to become the power hub of India.

"The private companies that are planning investment in Chhattisgarh are now switching over from steel to power generation," the official said, adding that the state had limited iron-ore deposits.

In fact, the Chhattisgarh government has stopped inviting new proposals in the steel sector and has clarified that it will sign pacts for new steel plants only if there are supporting iron ore deposits.

The state has 2,120 million tonne of iron ore reserves, around shares 18.55 per cent of country's deposits.

More than a dozen companies are in line for the only two blocks that are available, in Bailadilla hills in the Dantewada district.