HPGCL, IPGCL form JV for coal block development

With Haryana Power Generation Corporation Ltd (HPGCL) and Indraprastha Power Generation Co Ltd (IPGCL) jointly floating a company for development of a Madhya Pradesh-located coal block, Haryana-based thermal power plants can look forward to an enhanced flow of coal supply.

The coal block is said to have reserves of coal sufficient enough for generating 4,000 Mw of power for the next 25 years.

Giving details, an HPGCL spokesman said in a release here today that a coal block, Mara-II Mahan, in Singrauli district of Madhya Pradesh was allocated by the government of India. It was jointly allocated to HPGCL and Delhi government in August 2006.

The total area of the coal block is about 66 sq km and has an estimated reserve of 950 million tonnes of coal, said the release.

The spokesman added that HPGCL would also explore the possibility of establishing a pit-head plant at the coal block site.

HPGCL and IPGCL formed a joint venture company for further development of the coal block. Formalities like JV agreement, memorandum of association and article of association have already been finalised, according to the release.

The JV company would have two directors from HPGCL and two from IPGCL, while the posts of chairman and CEO would be rotated between Haryana and Delhi every two years, he said.

The Letter of Intent was issued to Mineral Exploration Corporation Ltd (MECL), Nagpur, on February 26, 2008, for priority exploration of the coal block, covering an area of approximately 10 sq km in the first phase at a cost of Rs 4.25 crore, the release said.

Applications for obtaining prospective licence for mining in the coal block have already been filed with the Madhya Pradesh Mining Department, and for forest clearance with the forest department of the state.

The spokesman further said the mining would have both open-cast and under-ground facilities and the apportionment of the coal extracted from the block between the two parties would be decided by the Ministry of Coal, government of India, after consultations with both parties.