Coal ministry flays OPGC on slow progress of coal blocks

The Ministry of Coal (MoC) has rapped the Odisha Power Generation Corporation Ltd (OPGC) over the tardy progress on development of Manoharpur and dip side of Manoharpur coal blocks.

The ministry, on the basis of recommendation by the inter-ministerial group (IMG) has sought explanation from the OPGC authorities within 20 days for the slow progress in developing the coal blocks. 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 IMG chaired by the additional secretary (coal), has representatives from the ministries of power, steel, commerce & industry and law and justice as well as the departments of legal affairs and economic affairs.

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

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

In the review meeting of MoC held in January 11-12 last year, the ministry expressed concern over the unsatisfactory progress of the coal blocks and accordingly 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.

The IMG observed that several critical milestones like submission of mining plan, forest clearance, environment clearance and land acquisition are still pending.