Coal news and updates

Odisha may go slow on Rs 8,000-cr coal corridor

The recent Supreme Court order scrapping allocation of 214 coal blocks awarded between 1993 and 2010 is likely to slow the pace of the common coal corridor planned in the Talcher Coalfields at an investment of Rs 8000 crore.

The Odisha Industrial Infrastructure Development Corporation (Idco), the nodal agency for land acquisition, that is implementing the project, has sought the opinion of the state industries department on going ahead with the project.“The recent decision of the Supreme Court on de-allocation of the coal blocks may result in cancellation of almost all the non CIL (Coal India Ltd) coal blocks in this region by the Ministry of Coal and fresh allocations may be made including the Chhendipada coal block. Under such scenario, the industries department may decide (on the project) as deemed fit”, said a letter from Idco to P K Dash, joint secretary, industries.

The industries department is yet to take a call on the matter. “The decision on the common coal corridor will be taken by the state Cabinet”, said a senior industries department official, refusing to elaborate further.

Idco has already filed application with the concerned district authorities for acquisition/alienation of 3285 acres of land for development of Phase-I of the corridor. It is also in the process of preparing forest diversion proposal (FDP) for diversion of forest land.

Rites Ltd, the engineering and consultancy arm of Indian Railways, is preparing the detailed project report (DPR) for the project. The DPR is expected to be submitted to the Ministry of Railways by November. Discussion is underway with the Railway Board for finalisation of the concession agreement of the common corridor.

SBI Caps, a wholly owned subsidiary of State Bank of India (SBI), has prepared the financial feasibility of the project.

A total of 6200 acres is to be acquired for the project, the total cost of which has been worked out to be Rs 1240 crore. The common corridor will traverse 143 km stretch, supporting 10 blocks operating in the Talcher coalfields under the command area of Mahanadi Coalfields Ltd (MCL). It is expected to handle coal traffic in excess of 100 million tonne every year.

Source: Business Standard