State to take up coal block for power

Shillong, Oct 18: Power starved Meghalaya today decided to go ahead in developing the Coal Block allotted by the Centre by setting up a “joint-venture-power-project” of 1320 MW in the state of Orissa targeted to meet the power demands of the state by 2020.

The urgency to develop the Coal Block at Orissa allotted by the Union Ministry of Coal way back in 2007 came after the government of Orissa recently demanded for the cancellation of the proposed coal block.

The centre has allotted 25 per cent each to four states – Meghalaya, Assam, Orissa and Tamil Nadu- to set up a joint venture power project of which the proposed source is from Mandakini B Coal Block in Orrisa.

“We are going ahead alone to have our own power project. The government proposed to have the joint venture power project with independent power producers,” Meghalaya Power Minister AT Mondal told reporters after the cabinet meeting Thursday evening.

Stating that the state is at present facing acute power shortage, Mondal said, “We need to develop the coal block to meet our power demands in the state,” adding “If the central government decided to cancel this block then there will be a huge loss for the state of Meghalaya.”

Mondal said, “The state will be highly benefitted as we have calculated that our projection says that till 2020 whatever power will be required we will be keeping around 450 MW of power and this will be allocated to the MeECL of which the rate will be fixed by the State Regulatory Commission.”

Mondal informed that Meghalaya will purchase this power for 25 years through a power purchase agreement.”

Out of the total deposit of the coal block which is around 1200 million tones, Meghalaya will be entitle of 25 per cent share which will be 300 million tones, Mondal informed.

However, Mondal said that the failure on the part of Orissa government to allot land posed as a stumbling block for the setting up of the project. He, however, said, “We will see that land is being allocated to the company in the nearby area of the coal factory, may be, within a span of 100 km that will reduce transportation cost for public interest.”

Mondal further informed that the proposed 1320 MW power projects will be having two units of 660 MW each  and the Meghalaya government will soon float the tender for  expression of interest.”

Modal  said, up  to 26 per cent cash less equity will be held by the government of Meghalaya and the bidding process will also have on how much free equity will be given by the bidders.-By Our Reporter