OPGC to reply to Coal ministry's notice in 3 weeks

On December 23, the Coal ministry had pulled up OPGC for slow progress in development of coal blocks

Expressing its confidence to retain the Manoharpur and dip side of Manoharpur coal blocks allocated to the state-owned utility, Odisha Power Generation Corporation (OPGC), the state government today said it will respond to the Coal ministry's notice asking it to explain the delay in development of these blocks within the stipulated 20 days.

“Prior approval of the Government of India is needed to mine coal which is pending for more than a year. We are not apprehending any de-allocation of the coal blocks. Since they (Ministry of Coal) have given us a show cause, we will reply before the deadline”, said secretary (energy) P K Jena.

On December 23, the Coal ministry had pulled up OPGC for slow progress in development of the coal blocks. On the basis of recommendation by the inter-ministerial group, the ministry sought explanation from the OPGC authorities.

“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, Coal ministry wrote to general manager (mines) of OPGC in the letter.

The ministry also asked OPGC to furnish a detailed status on the progress of the end-use plant for which the coal blocks were allocated.

The ministry had allocated the Manoharpur and dip side of Manoharpur coal blocks to OPGC on July 25, 2007 to cater to the capacity expansion 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.