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Coal ministry presses for pact between Centre and OMDC

The Brahmani coal block with estimated geological reserves of 58.90 million tonne has been allocated to OMDC


The Ministry of Coal has urged the Odisha government to ask Odisha Minerals Development Company (OMDC) to enter into an agreement with the Central government for development of the Brahmani coal block.

The Brahmani coal block with estimated geological reserves of 58.90 million tonne has been allocated to OMDC under Rule 7 of the 'Auction by Competitive Bidding of Coal Mines Rules- 2012.

According to these Rules, the reserve price would be payable by the allocatee company as specified in the allocation letter or the agreement. In case the reserve price is yet to be determined, the allocatee company shall furnish an undertaking for paying the reserve price within the specified time failing which the allocation shall stand cancelled.In addition, all the terms and conditions of allocation of the coal block, as per Rule 4 (6) (i) of the 'Auction by Competitive Bidding of Coal Mines Rules- 2012' would be applicable to the allocatee company.

Apart from Brahmani, the Coal ministry had notified four more blocks in Odisha- Chandrabila, Tentuloi, Sarapal-Nuapada and Kudanali-Luburi.

NTPC has been allocated the Chandrabila coal block exclusively while the Kudanali-Luburi has been allotted jointly to NTPC and Jammu & Kashmir State Power Development Corporation Ltd.

The Andhra Pradesh Power Generation Corporation Ltd (APGENCO) has won the Sarapal-Nuapara block. Among the Odisha PSUs, only Odisha Thermal Power Corporation Ltd (OTPCL), a 50:50 joint venture between Odisha Mining Corporation (OMC) and Odisha Hydro Power Corporation (OHPC) has won the Tentuloi coal block.

The block has been allotted for its 2400 Mw coal-fired plant proposed at Kamkahyanagar near Dhenkanal.

The coal blocks were allotted by the ministry based on the recommendations of an inter-ministerial committee.

The state PSUs had promptly applied for new coal blocks after the MoC de-allocated five blocks in Odisha for their unsatisfactory development.

The Coal ministry had de-allocated New Patrapara, Baitarani West, Utkal-D, Mandakini-B and Naini blocks. Of these Utkal-D and Mandakini-B were allocated to OMC while Baitarani West was awarded to OHPC jointly with PSUs of other states. The rest two blocks were allocated to private firms.

Source: Business Standard