OPGC coal block's progress stuck for want of PL

Ministry of Coal has asked OPGC authorities to respond within 20 days failing which the ministry will take appropriate action

The progress on opening of Manoharpur dip side coal block allocated to Odisha Power Generation Corporation (OPGC), the only state owned thermal power producer, is stuck due to want of prospecting licence (PL).

Though the state PSU had applied for the PL nearly three years back, the steel & mines department is yet to issue the same. “In the absence of PL deed, OPGC is unable to make headway on the Manoharpur dip side coal block though we have made satisfactory progress on the Manoharpur coal block,” said an official source.

The Ministry of Coal (MoC) had recently issued notice to OPGC, seeking explanation on the delay in developing the two coal blocks. The MoC has asked OPGC authorities to respond within 20 days failing which the ministry would take appropriate action.

“You are hereby called upon to explain, on each milestone separately to this ministry within a period of 20 days from the date of issue, the reasons for slow progress as well as the efforts made by you in development of the coal block, failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken,” S K Shahi, director, MoC wrote to general manager (mines) of OPGC.

The ministry’s notice was on the basis of finding by the inter-ministerial group (IMG). The IMG is mandated to review the progress of development of allocated coal blocks and associated end-use projects and to recommend action, including de-allocation, if required.

The MoC had allocated the Manoharpur and dip side of Manoharpur coal blocks to OPGC on July 25, 2007 to cater to its expansion plan at the site of its Ib valley power station near Jharsuguda. OPGC runs a 420 Mw plant and was adding two 660 Mw super critical units. The expansion plan is being taken up at a cost of Rs 11,547 crore which also includes cost of other components like coal block development and dedicated rail corridor. In order to expedite the development of Manoharpur and dip side of Manoharpur coal blocks, the MoC held review meetings from time to time. In the review meeting held in January 11-12 last year, the ministry expressed concern over the unsatisfactory progress of the coal blocks and issued an advisory letter on April 26, 2012 to expedite its development.

Later, the IMG, in its 19th meeting held on June 25 this year, noted that no significant progress has been made by OPGC towards development of the coal blocks.