TN thermal projects to get a boost as TANGEDCO likely to bag Odisha coal block

CHENNAI: With thermal power projects lined up and domestic coal requirements on the rise, Tangedco may find the going easy as it is likely to bag the bid for the Sakhigopal B Kakurhi coal block in Odisha by the Union Ministry of Coal.

"Tangedco is the only bidder for the Sakhigopal-B Kakurhi coal block in Angul district of Odisha in the 2nd attempt of the 17th tranche of coal block auction. Hence the allocation of coal block to Tangedco by the Ministry of Coal is due," a senior Tangedco official said.

The official added that once the block in the Angul district of Odisha is allocated, the utility would start the developmental activities. The Sakhigopal B Kakurhi coal block is spread over 6.53 sq km and holds 421.44 million metric tonnes of G11 grade coal.

The official said that for the second time in a row, the utility is the single bidder for the Sakhigopal B Kukurhi coal block in Odisha. "The auctioning for the first attempt was cancelled last year as per the norms after receiving a single bid. In the second attempt, the coal block received a single bid from the Tangedco alone. Hence, it should be allocated to it," the official said.

Once the Odisha block is allocated to it, Tangedco will start development activities. The coal mined from the block would be used for its upcoming thermal power projects. Tangedco has three upcoming projects – 1,320 MW Ennore SEZ, 660 MW Ennore Expansion and 1,320 Udangudi – with a total generation capacity of 3,300 MW. It may be noted that the standing linkage committee of the Coal Ministry has recommended granting short-term coal linkage from the Singareni coal mines.

Tangedco's new block bidding has come amid its issuing a termination notice to the Coal Ministry for the Chandrabila coal block. The Ministry of Coal allocated the Chandrabila coal block in Odisha with a reserve capacity of 896 million tonnes to Tangedco on February 24, 2016.

The development of the Chandrabila coal block could not be carried out as the licence for prospecting was not awarded by the regional office of the Ministry of Environment and Forest citing the proximity of the tiger corridor and the non-allocation of adequate land for dumping the overburden was not provided by the coal ministry.