Coal India Limited (CIL), a state-owned largest Coal producer is planning to set up a power project in Odisha in upcoming year (2015/2016).
Coal India, a Government owned miner accounts for almost 80% of Coal output of the country, plans to set up a 16,000 MW power project near one of its mine at Odisha. Coal produced from that mine cannot be shipped & sold owing to lack of rail connections and supply problems.
Insufficient connectivity is one of the reasons for which the company has been unable to achieve output targets for more than 6 years – leading to shortages of Coal.
“If we are not able to evacuate Coal, we should set up Pit-head power plants,” said by CB Sood, the executive director of CIL.
Pit-head power plants would be beneficial for the country in terms to reduce power tariffs by at least 50 paisa per kilowatt hour compared with conventional plants owing to savings on transportation and other costs.
“Coal India has already received some clearances. The plant will be near a mine that produces 20 MnT pa Coal in the eastern state of Odisha “, he added further.
Country is facing acute fuel shortages. In the current fiscal, there may be a shortfall in production of around 5 MnT. Without assured supply from Coal India, private companies will have no option but to raise imports.
However, it is important for Coal India to ensure that it will fulfill its Coal supply obligations to power companies before venturing into electricity generation itself.
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