Rail corridor planned for Rampia coal block

Common rail corridor is proposed to be developed with equity participation from Idco and Mahanadi Coalfields Ltd

After planning a common rail corridor for the Angul-Talcher-Chhendipada belt, the Odisha government has decided to develop a similar infrastructure facility in the Rampia coal block.

The common rail corridor is proposed to be developed with equity participation from Odisha Industrial Infrastructure Development Corporation (Idco) and Mahanadi Coalfields Ltd (MCL). MCL has been appointed as the lead member to formulate the common alignment plan of the corridor in such a manner that there is minimal human displacement and less diversion of forest land.

The Rampia and dip side Rampia coal block in the Ib valley area was allocated jointly to six firms- Lanco Power, Sterlite Energy, GMR Energy, ArcelorMittal, Navabharat Power and Reliance Infrastructure Ltd in 2008. The co-allocatees had formed a special purpose vehicle (SPV) called Rampia Coal Mine & Energy Ltd to develop the coal block.

Recently, ArcelorMittal had surrendered its portion of the coal block after aborting its 12 million tonne greenfield steel plant in Odisha. With a shareholding of 13.04 per cent, the steel giant's allocation was of 84.16 million tonne of coal for 30 years for its 750 Mw power plant proposed in Keonjhar, the site of its now shelved steel project.

The coal block is set to cater to the requirement of coal-fired power stations of Sterlite Energy (2400 Mw) at Burkhamunda near Jharsuguda, GMR Energy (1400 Mw) at Kamalanga (Dhenkanal), Lanco Power (1000 Mw) at Dhenkanal and Reliance Infrastructure (1000 Mw) at Jharsuguda.

Recently, the state steel & mines department has sought clarification from the Coal ministry on grant of prospecting license (PL) pending for the coal block.

With ArcelorMittal, one of the co-allocates of the coal block, surrendering its share of the block, the state government is in a fix over processing of the block.

Also, a portion of the Rampia coal block is found to be overlapping with the coal block VIII already acquired in favour of Mahanadi Coalfields Ltd (MCL). The extent of overlapping has been found to the tune of 426 hectares (ha).

"It may be kindly clarified as to whether the overlapped area is to be excluded from the (Rampia) coal block. Further, it may also be clarified as to whether processing for grant of PL should continue in view of one of the co-allocatees having surrendered its share in the allocated coal block”, G Srinivas, Odisha steel & mines secretary recently wrote to joint secretary, Ministry of Coal.