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The Coal India (CIL) board has ratified the first 1,600 Mw (800 Mwx2) pithead thermal power project by its subsidiary, Mahanadi Coalfields, at a capital expenditure of Rs 11,000 crore, for a foray into electricity generation by the world’s biggest coal producer.
Without any independent directors (IDs) on the board cleared the project on Saturday. It also cleared five other mining projects to generate an additional 30 million tonnes yearly.
Coal India sources said as these projects were treated as regular business and not policy decisions, they were approved despite the absence of IDs. The Government is yet to appoint any of the seven needed IDs of the total board strength of 14. The independent berths have been vacant since September 11.
The Mahanadi Coalfields power project, located in Sundergarh district of Odisha, is the maiden pithead thermal project of CIL and could be operational over the next three years. The project had seen a significant delay on account of issues regarding land acquisition, environment and forest clearances.
Mahanadi Coalfields Chairman and Managing Director A N Sahay, in the past, had said 800 acres had been acquired and water linkages were in place. The plant would utilise coal from the company’s Basundhara mines. However, the end-use of the power generated from the two 800 Mw units — captive consumption or merchant power — is yet to be determined.
The world’s biggest coal producer, CIL, accounts for 80 per cent of the domestic production.
