Odisha to hold up land transfer for Mahaguj coal mine project

With the row on the issue of free power from thermal power plants and plants based on coal washery rejects yet to be resolved, the Odisha government has decided to put on hold land acquisition for the Machhakata coal mine project.

The integrated coal mine project is to be developed by Mahaguj Collieries Ltd, a joint venture between Maharashtra Power Generation Company Ltd (Mahagenco) and Gujarat State Electricity Corporation Ltd (GSECL) in Angul district at an estimated cost of Rs 20,000 crore.

Since land acquisition is a time bound process and declaration under Section 6 (1) has already been issued for part of the project area, Odisha Industrial Infrastructure Development Corporation (Idco) may be allowed to proceed with the land acquisition process in respect of the three remaining villages. However, land acquired for the project should not be handed over to the project developer until we decide on the quantum of free power”, Odisha chief secretary J K Mohapatra wrote in a file note sheet.

The state government had urged the Union power ministry to allow 25% free power from thermal power plants and 33% from plants generating power from rejects of washed coal.

In response to the demand, the Planning Commission had engaged The Energy Resources Institute (TERI) to carry out a study on equitable sharing of benefits arising from coal mining and power generation amongst resource rich states. The objective of the study was also to examine the impact of allowing free power at variable cost from coal based power plants in the host state.

The state government is now awaiting the report from TERI before taking a final view on the matter of free power. The report is expected by December this year.

The Machhakata coal block awarded to Mahaguj Collieries Ltd has mineable reserve of 1244 million tonne. The block will have an initial mining capacity of 30 million tonne per annum (mtpa) that is to be subsequently ramped up to 50 mtpa. The mining lease is spread over 3023 hectares (ha).

Recently, Mahaguj Collieries Ltd (MGCL) had written to the Odisha chief secretary, pressing for start of land acquisition in three affected villages- Machhakata, Sapoinali and Podapada. The land in these villages is located within the coal block area and is exclusively required for coal mining.

"Issuance of 4 (1) notifications for three villages -  Machhakata, Sapoinali and Podapada for want of an agreement between the Odisha government and MGCL. It is requested that 6 (1) declarations already issued for part of the project area and land compensation rates already worked out, it would be better if the land acquisition for the remaining three villages is allowed to proceed”, MGCL chairman and managing director Asheesh Sharma said in the letter.

Ahmedabad-based Adani Group's flagship company Adani Enterprises has won rights to develop and operate this coal block. MGCL proposed to set up 2500 Mw (10x250 Mw) power plant based on coal washery rejects.

The coal mine project could not make any headway due to stiff resistance of affected people who have repeatedly disrupted public hearing.