The Ministry of Coal has shortlisted four mines in Odisha to be awarded for power projects. It has called applications from States interested in developing these projects.
“The States have been asked to submit their applications by January 10,” a Coal Ministry official told Business Line . The four mines are located at Talcher coalfields in Odisha.
The Ministry of Coal would allocate the mines to the respective States, which would call power developers to bid for projects based on ‘tariff.’ The lowest bidder would be allowed to set up the power plant.
The projects would be open to both Government and private companies.
“The power plants may not necessarily be pit-head. The Government is assuring coal supply to the stations,” the official said.
The States would be selected based on the parameters given in the Auction by Competitive Bidding of Coal Mine Rules 2012. The Centre plans to allocate the blocks in the current financial year. The States are expected to finalise the power developer for setting up the project by the first quarter of 2014-15.
The States getting the coal blocks would decide the capacity of the power plant. Generally, a 1,000-MW power plant requires 4.5 million tonnes of Indian coal every year.
It would be the States’ responsibility to secure clearances such as forest and land, and facilitate land acquisition.
“The Coal Ministry is not offering any in-principle clearances with the mines,” the official added.
The industry watchers are sceptical that considering the current probe into coal block allocations, the procedures for clearances have stuck. This may impact companies’ sentiment to invest in projects related to captive mines.
Earlier, the Odisha State Government had written to the Coal Ministry seeking clarifications on clearances to coal blocks amid the probe on alleged coal allocation scam.