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| Torrent's Morgha project yet to take off |
| BS Reporter / Mumbai/ Ahmedabad Oct 02, 2009, 00:55 IST |
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GMDC to supply Naini coal for Torrent’s Pipavav project, Adani’s Mundra plant
Two years on, state run Gujarat Mineral Development Corporation's (GMDC) pit-head power project at Morgha block in Chattisgarh for which bids were invited has landed in the middle of nowhere. Torrent Power had emerged as the lowest bidder in competitive tariff bidding process however the project has not been awarded to it.
The 1,000 MW power project is estimated to cost over Rs 6,000 crore and has been referred to the state government by GMDC for over a year-and-a-half now.
Torrent Power's ambitious expansion plans of about 9,500 MW also includes Morgha project.
When asked, Torrent group chairman Sudhir Mehta said on the sidelines of an event to dedicate their SUGEN power project to the country: "We have received oral communication from the state that we are the lowest bidder. However, we have not got any written communication as yet."
Sometimes, as in the case of SUGEN power project or the company's upcoming project in Dahej, it takes faster to take off while in some cases it takes longer, Mehta added.
Sources in Torrent said that the project is very much on the cards.
A government official on conditions of annonymity said that the project was referred to the state government and no decision has been taken so far.
Morgha block was divided into two parts and GMDC had decided to rope in two developers for setting up power plants. While one portion was allotted to KSK Energy Energy for setting up 1800 MW power project, GMDC had invited bids for setting up another 1,000 MW project. Besides Torrent, Adani Power had qualified for the final round of bidding. In the second quarter of 2007, the bids were opened.
Torrent had quoted Rs 2 per unit for the 1,000 MW power project. GMDC was to supply 4 million metric tonnes of coal per annum from the Morgha block to the developer and about 120 million tonnes for 30 years, sources said.
The state run PSU has meanwhile decided to supply coal from Naini block in Orissa to Torrent's power project in Pipavav and Adani's Mundra power project. A senior official of GMDC confirmed the development.Naini cloal block has total coal deposits of 500 million tonnes.
The ministry of coal had allocated half the block having coal reserves of 250 million tonnes to GMDC. While Torrent is planning a 2,000 MW power project at Pipavav, Adani plans to set up 4,620-MW power project at Mundra. GMDC was alloted the two coal blocks, Morga and Naini in 2007.
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