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Bhel says coal row won't impact its operations

There have been reports that some of the projects, for which Bhel is supplying equipment could be impacted by coal block allocation issues

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State-run Bharat Heavy Electricals today said the ongoing controversy over coal allocation for power plants will not have any impact on the engineering major's operations.

There have been reports that some of the projects, for which is supplying equipment could be impacted by allocation issues.

"Projects currently being executed by Bhel have the required coal linkages and are progressing satisfactorily," Bhel said in a statement.

The power equipment major emphasised that ongoing coal allocation controversy would "absolutely have no impact on the company's order book or its operations".

Bhel has an order book position of around Rs 1,30,000 crore.

According to the company, projects being executed by it do not face any risk as far as coal linkages are concerned.

"There is no potential risk involved due to issues related to coal. The payments for the work being carried out on these projects are also coming in regularly," it said.

Bhel said the 4x270 MW Chandwa project (of Abhijeet Group) being executed by the company has the necessary coal linkage from Coal India and is in an advanced stage of execution.

"Similarly, the 4x600 MW project at Tanmar of the Jindal Power Ltd (JSPL) being executed by Bhel is also in a very advanced stage of execution and has the coal linkage through Coal India. The projects of JSPL, for which doubts on the coal blocks at Jitpur and Amarakonda have been raised, pertain to a new project proposed by JSPL at Godha. The order for this project has still not been finalised," it said.

The statement said that various customers such as DB Power, Jindal Photo Ltd, Adhunik Power and GVK Power -- which have been allocated coal mines for their upcoming power plants -- also have alternative coal linkage/tapering linkage available from Coal India or its subsidiaries. "Their power plants are in various stages of development...," it said.

"In the case of Mandakini-A Block, allotted to Monnet Ispat and Energy Ltd., the company has communicated to Bhel that they do not envisage any problem with respect to their 2x525 MW TPS at Angul, being executed by Bhel," the statement said.

An Inter-Ministerial Group (IMG) yesterday recommended deallocation of three more coal blocks, taking the total number of mines recommended by the IMG to the Coal Ministry for cancellation of licences due to insufficient progress to seven.

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