For three years, Bihar Chief Minister Nitish Kumar was trying to secure, albeit unsuccessfully, the all-important coal linkage for nearly Rs 20,000- crore worth of mega power projects, proposed in the State.

The initiative was part of the election promise of the JD(U)-BJP alliance in 2010, to resurrect the dilapidated power infrastructure in the State.

But everything has now changed for the better. In a happy coincidence, after Kumar broke away from the BJP-led NDA, the Congress-led UPA Government at the Centre has showered Bihar with coal.

According to sources, in a recent decision, the Coal Ministry awarded Bihar with a captive asset, ‘Deocha Panchami’ in Birbhum district of West Bengal. This is the second coal block awarded to Bihar since 2006. The State will get nearly a quarter of the 2,100 million tonne (mt) recoverable reserve from the Birbhum asset, to be shared with West Bengal (25 per cent), Uttar Pradesh, Jammu and Kashmir and Tamil Nadu.

Bihar’s share (486 mt) is linked to three proposed super critical power stations of 2X 660 MW each at Chausa (Buxar), Kajra (Lakhisarai) and Pirpainti (Bhagalpur).

Huge potential

Bihar has already entered into a preliminary pact with SJVN Ltd (formerly Satluj Jal Vidyut Nigam Ltd) in October for setting up the 1320-MW Chausa thermal power station on build-own-operate (BOO) basis.

The State’s previous attempts to attract investment in Kajra (1320 MW) and Pirpainti (1320 MW), were unsuccessful, in the absence of fuel linkage. With the availability of coal block, Bihar is now expected to invite bids for both the projects.

But, that’s not all. In an immediate boost to the power availability outlook in the State, the Centre recommended Coal India (CIL) to supply nearly 5 mt coal to State generation utility sponsored projects.

Supplies from CIL

Currently dependent on nearly 950 MW daily supplies from NTPC, the State utility is scheduled to commission renovated own capacities at Barauni (2 X 110 MW) and Muzaffarpur (2 X 110 MW) from this month. To be operational this fiscal, both the plants will now enjoy long-term supplies from CIL.

In addition, Bihar is offered nearly 2.5 mt tapering linkage (short-term supplies granted against captive assets) by for the proposed 2 X 250 MW Barauni extension project, undertaken by the State utility.

The linkage was granted against the only captive asset (Urma Paharitora, Jharkhand) Bihar was awarded in the past. The block is held jointly with the Jharkhand State utility.

Related Topics