MP Genco discards allotted coal block

Source: The Hitavada      Date: 04 Oct 2017 10:33:24


 

By Ashish Rajput,


A preliminary survey confirmed that the allotted coal reserve is commercially unviable to fulfill coal requirements of the company

Madhya Pradesh Power Generating Company Limited has discarded the allocation of coal block allotted by Coal India Limited (CIL). A preliminary survey confirmed that the allotted coal reserve is commercially unviable to fulfill coal requirements of the company. CIL will soon allocate new coal linkage to the company for ensuring sufficient coal supply.


Madhya Pradesh Power Generating Company Limited, Managing Director, Anand Prakash Bhairve, while talking to ‘The Hitavada’, informed that the company has refused to access the allotted coal block last week that was commercially unviable. Coal India Limited (CIL) has agreed to take back the allotted coal block and started preparations for providing new coal linkage to the state-owned thermal power stations.


AP Bhairve added that instead of ensuring supply of quality coal at economical price, the coal reserve will prove a costly affair for the company. The company had conducted a preliminary survey in collaboration with private agency to check the technical and commercial viability of the coal reserve. Currently, the company is toiling hard to streamline its coal supply for smooth operation of its coal-fired power stations.

Inadequate coal supply emerged a national problem following the increasing demand and thermal power generation, he added.It may be noted that Ministry of Coal had allocated a coal reserve to MP Genco through competitive bidding in Gondbahera – Ujheni area in district Singrauli. A total of 14 coal blocks were allotted to different Public Sector Utilities (PSUs) in the country during the year 2013. The allotted coal block was estimated to have coal reserve of 532 million tones to avoid dependency of supplying black fuel to the state-owned thermal power units at economical price. MP Genco had earmarked to ensure supply black fuel to Shri Singhaji Thermal Power Station, Khandwa.