Bhubaneswar: Odisha Coal and Power Ltd (OCPL) will invest Rs.1,500 crore in developing Manoharpur and dip side of Manoharpur coal blocks to meet the fuel needs of a power project in Jharsuguda district.
OCPL is a 51:49 joint venture (JV) between two state-run companies: Odisha Power Generation Corporation (OPGC) and Odisha Hydro Power Corporation (OHPC).
It was awarded two coal blocks under the public sector undertaking (PSU) dispensation route for 4x660 mega watt expansion project of OPGC in Jharsuguda.
"We need Rs.1,500 crore to develop the two coal blocks. While Rs.1,100 crore would be met through loan to be raised from Power Finance Corporation and Rural Electrification Corporation, the balance Rs.400 crore would come from the promoters," said a senior government official.
OCPL was incorporated in January 2015 as a wholly owned subsidiary company of OPGC. Later, OHPC was also given a shareholding in OCPL.
OPGC will nominate four members to OCPL board of directors and the OHPC three. The energy secretary will be the chairman of the company.
"The JV company plans to start the mine operation by April 2019 in accordance with the stipulations of the efficiency parameters of allotment agreement signed with nominated authority. Most of the major permits and clearances and regulatory approvals including environment and forest clearance are already in place for the project," said Energy Secretary Rajesh Verma.
The total reserve of the two coal blocks is 531 million tonne (mt) (Manoharpur coal block: 181 mt and Dip-side Manoharpur coal block: 350 mt). Coal will be mined initially from Manoharpur coal block with rated capacity of eight mt per annum.
With OPGC planning to add two more units of 1,320 mega watt after the completion of the existing expansion plan, the coal production capacity will be further enhanced to 15 mt per annum, said an official.
"I am sure OCPL will set its own benchmark in efficiency in mining operations and uninterrupted supply of quality coal fulfilling the fuel requirement of the 4x660 MW expansion project of OPGC. This is a step towards making Odisha a power surplus state," said Energy Minister Pranab Prakash Das.