Coal news and updates

Panel to expedite Rs 8000-crore coal corridor

The Odisha government has announced the formation of an eight member panel to expedite implementation of the 143-km Angul-Chhendipada-Talcher common coal corridor taken up at an investment of Rs 8000 crore.
 
"As per provisions contained in para 9.7 of Industrial Policy Resolution (IPR)-2007, the Odisha Industrial Infrastructure Development Corporation (Idco) is promoting the development of a common corridor in Angul-Talcher-Chhendipada belt which is the largest coal bearing area of the state. After careful  consideration, the government has been pleased to constitute a committee for expediting implementation of the project”, said a notification from the industries department.
 
The panel will be headed by principal secretary (industries) Parag Gupta.
 
Idco that will implement the project may avail an inter-corporate loan from state run miner Odisha Mining Corporation (OMC) to meet land buying cost. 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.
 
Land acquisition proposal for the Jharpada-Tentuloi portion of the corridor has been prepared and acquisition cost of this portion has been assessed at Rs 150 crore.
 
A special purpose vehicle called Brahmani Railways, a wholly owned subsidiary of Idco, has been formed with a share capital of Rs 10 crore, to implement the project.
 
The steel & mines department has suggested that SBI Caps, a wholly owned subsidiary of State Bank of India (SBI) may be engaged as a consultant for financial structuring of the project. Idco will prepare the draft Terms of Reference (TOR) for the consultancy services. Since the detailed project report (DPR) has been prepared by Rail India Technical Services Ltd (Rites), it would provide all required inputs pertaining to project cost to the appointed consultant.
 
The common corridor will support 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. The proposed corridor will be connected to rail heads at three locations- Jharpada, Angul and Budhapanka. The common corridor will have multiple entry and exit points and no surface crossing. Besides, flyovers have also been proposed to avoid cross movements at junction stations.
 
It may be noted a number of power and steel companies, which have been allotted coal blocks in the area, are facing resistance with regard to land acquisition for construction of private railway sidings. The construction of a common corridor is expected to overcome the problem.

Source: Business Standard