The 2400 MW coal-based power plant proposed by Odisha Thermal Power Corporation Ltd (OTPCL), an Odisha government PSU, has been pushed into uncertainty with no alternative coal block in sight.
The Ministry of Coal (MoC) had originally allocated the Tentuloi coal block in favour of OTPCL with reserves of 1200 MnT. But Tentuloi being an underground block was tough to extract and posed the risk of escalating the cost of power production.
The Odisha government has been making repeated pleas to the ministry to allocate an alternative block. The state government had even offered to surrender the Tentuloi block so that OTPCL becomes eligible for a new coal block under the PSU dispensation route.
Responding to the state government’s request, a committee was constituted by Coal India arm Central Mine Planning & Design Institute (CMPDI). The committee after examining the geo-mining information of the Tentuloi block concluded that there are some adverse mining issues in the coal block compared to OTPCL’s requirement.
Keeping in view the committee’s recommendations, the MoC examined the feasibility of allotment of Kardabahal and Brahmanbil coal blocks to OTPCL. However, both these coal blocks with high stripping ratios constrained their suitability for open cast mining.
Alternatively, the Odisha government nudged the ministry to consider allocation of either Chhendipada and Chhendipada II coal blocks or Utkal B1 and B2 blocks.
The state government’s urgency for an alternative coal block stems from the environment clearance that is due to lapse on 5th March this year. In the absence of an alternative coal block, the renewal of the green clearance was at stake.
Being an underground coal reserve, Tentuloi block is very difficult to mine. Most of the reserve is below 900-meter depth. Even with the use of best technologies, only 2 MnT of coal can be extracted from this mine annually while OTPCL’s requirement for the power project is 16 MnT per annum (MTPA).
OPTCL is a 50:50 joint venture (JV) between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC). OPTCL is planning to set up a 2400 MW coal-fired power plant at an estimated cost of Rs 17,000 crore. The power station has been proposed at Kamakhyanagar in Dhekanal district.
The project needs 1767.90 acres of land, including 1074.95 acres of private land, 684.25 acres government land and 8.7 acres forest land. The power purchase agreement (PPA) for sale of entire power to be generated by the OTPCL power station has been executed with Gridco (Grid Corporation of Odisha), the state-owned power trading firm.
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