OPGC undecided on bidding for coal blocks

OPGC is a 51:49 joint venture between the Odisha government and US-based energy major AES Ltd

Odisha Power Generation Corporation Ltd (OPGC), the state run thermal power producer, is yet to take a call on participating in the bidding process for coal blocks under Coal Mines (Special Provisions) Bill, 2014.

OPGC, 51:49 joint venture between the state government and US-based energy major AES Ltd, had won the Manoharpur and dip side of Manoharpur coal blocks to cater to its 1320 Mw expansion plan at its Ib valley plant near Jharsuguda. But the PSU lost the coal block after the Supreme Court in its order in August 2014, pronounced 203 coal blocks allocated between 1993 and 2010 as illegal.

"We had earlier written to the Centre to re-allocate the Manoharpur and dip side of Manoharpur coal blocks in our favour. But we are yet to decide on whether we will bid for the coal blocks going to be offered under the auction route" said S C Mohapatra, principal secretary (energy) and chairman of OPGC.

Last month, Odisha's energy minister Pranab Prakash Das has written to Coal minister Piyush Goyal, pitching for awarding the two coal blocks again to OPGC. The minister cited that the PSU had made considerable progress on its proposed 1320 Mw expansion at its Ib valley plant.

The state government had recommended grant of mining lease (ML) in OPGC's favour in December 2012. But the matter was held up by the Ministry of Coal, Das said in the letter.

OPGC runs a 420 Mw (2x210) plant presently at the station. The expansion plan would add 1320 Mw capacity to the power station. 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 .

Land acquisition for the coal mine had gained momentum. Out of 1190.60 acres government land applied by OPGC, 1041.76 acres was sanctioned. Similarly, 825.72 acres of 1362.35 acres of private land was also sanctioned for the coal mine development.

The state owned generator has already started construction work on its expansion. To fund the expansion, OPGC has already tied up funding of Rs 8660 crore from Power Finance Corporation (PFC) and Rural Electrification (REC), by executing a loan agreement with the two Central PSUs. The balance funding is to be borne proportionately by the Odisha government and AES .

Power equipment major Bharat Heavy Electricals Ltd (BHEL) has bagged Rs 4051 crore contract from OPGC for supply and erection of the main plant for 1320 Mw capacity expansion pursued by the thermal power producer.

The contract is for supply of the main plant consisting of boiler, turbine and generator (BTG) at an all inclusive firm price of Rs 3748.94 crore and erection of the main plant at Rs 302.06 crore.

The Balance of Plant (BoP) contract valued at Rs 1573 crore was bagged by BGR Energy Systems. The contract includes supply, erection and commissioning of the BoP for OPGC's two units to be added at its plant .