Coal linkage delayed for MCL's Rs 11,000 cr power plant

Coal linkage for Coal India arm Mahanadi Coalfields Ltd's (MCL) 1,600 MW super critical thermal power project in Sundargarh district of Odisha has been delayed.

"The coal linkage is still pending with the government. We have written to the government for giving us preference of a central PSU in offering the linkage," MCL Chairman and Managing Director A K Jha told PTI.

A N Sahay, former MCL CMD who retired last October, said: "Despite MCL's own pithead power project, there has been delay in granting coal linkage. We are being treated at par with any other other project. Till my tenure, I could not secure the linkage."
 

If the government does not offer any preference, MCL will have to get linkage from its own mine through the standing committee.

MCL coal production for the current fiscal is expected to be 150 million tonnes (MT) out of the 550 MT production by Coal India.

Jha said though coal linkage was pending, the preliminary work for the proposed power project has already begun. The company has also started the process of seeking environmental clearances.

MCL had said 800 acres had been acquired for the project and water linkages are in place.

Coal India board has also ratified the 2 x 800 (MW) thermal power plant at the mouth of a coal field in the Mahanadi basin, which will mark the coal producer's foray into the power sector.

A special purpose vehicle (SPV), Mahanadi Basin Power Ltd (MBPL), has been incorporated as a wholly-owned subsidiary of MCL for setting up the project.