Chendipada Coal block attracts investors for Power Plant

By Staff
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Google Oneindia News

Angul, Jul 19 (UNI) Utkal coal block of Chhendipada area, where coal is found only a few mt below the surface, has attracted a number of companies from both public and private sectors for setting up captive power plants.

Official sources said the coal found in the area was of Grade D quality and suitable for power generation. The coal reserve was only eight mt below the surface.

A part of Talcher coalfield, Utkal coal bloc was located at Raijharan area of Chhendipada tehsil and had been divided into seven parts -- Utkal-A, B1, B2, C, D, E and F.

While Utkal-B1 block had been allotted to Jindal Steel and Power Limited in 2003 as a captive coal mine, B2 block was allotted to Monnet Ispat &Power limited in 1998.

The right of mining in block C was given to IMFA group in 1998 and Tata Sponge Iron Ltd of Keonjhar was given mining lease of Block F in 2006.

The state-owned Orisa Mining Corporation got block D, while block E had been given to Nalco for captive mining in August, 2004.

The Coal Ministry allotted ''A'' block to public sector Mahanadi Coalfield Limited and four other companies, including Jindal Stainless Limited.

The block A was earlier allotted to Kalinga Power Corporation in 1996 to set up a power plant at Kalinganagar. But the allotment was cancelled after the company had failed to set up the power plant and was reallotted to MCL and four other companies.

All the coal blocks except Utkal D were captive coal mines for power plants.

Utkal D though owned by OMC will be developed and mined by a private company called Kalinga Coal Mining Private Limited (KCMPL).

The works were in an advanced stage and the acquisition of land had already been done. If all went well, the production in the area would start by December.

According to state Deputy Director (Mines) P C Patra, the lease issue of these companies except KCMPL was under process.

According to district office sources here, IMFA and Nalco, Tata sponge, Monnet, Jindal Steel and Power Limited (JSPL) were on different stages of land acquisition. All companies except Nalco had got the environmental clearance.

While the state-1 clearance for forest land for Monnet, IMFA and Nalco were kept pending with local DFO office, JSPL and KCMPL had already got the state-1 clearance from the DFO office, according to source.

UNI

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