Odisha govt to iron out issues in OPGC expansion

The state government would sort out issues related to land acquisition and forestry clearance, impeding expansion of Odisha Power Generation Corporation (OPGC). Under the expansion plan, OPGC is adding two super critical units of 660 MW capacity each to its existing 420 MW coal-fired plant at Ib valley near Jharsuguda.

"There are land related issues relating to the establishment of ash pond, MGR (merry go round) track and coal block. The focus would be on removing bottlenecks for OPGC's expansion," said Rajesh Verma, principal secretary (energy) and chairman of OPGC.

Construction work on OPGC expansion is 57% complete, he said.

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

Though OPGC has been awarded the Manoharpur and Manoharpur dip side coal blocks, it has applied for bridge linkage since power generation from the expanded units was expected to commence earlier than coal mining. Coal production from the two mines is set to begin in April 2019 and reach peak capacity by 2021. Till then, OPGC will need bridge linkage.

The bridge linkage for OPGC expansion has been finalised. The coal allocation is likely to be from the Lakhanpur mines of Mahanadi Coalfields (MCL).

Odisha Coal & Power (OCPL), a 51:49 joint venture (JV) between two state run entities — Oidsha Power Generation Corporation (OPGC) and Odisha Hydro Power Corporation (OHPC) — would invest Rs 1,500 crore on development of the Manoharpur and dip side of Manoharpur coal blocks. Annual coal production capacity of the Manoharpur and dip side of Manoharpur coal blocks is pegged at eight million tonne. Total reserve of the two coal blocks is 531 million tonne.

Both the coal blocks have been allocated to OPGC under PSU dispensation route to cater to its 1,320 (2x660) MW expansion at Ib valley. OPGC incurred an expenditure of Rs 2,015 crore on its expansion during 2015-16.

OPGC is investing Rs 11,547 crore on expansion which also includes cost of other components like coal block development and dedicated rail corridor.

The state-owned generator has already started construction work on its expansion. To fund the expansion, OPGC has already tied up funding of Rs 8,660 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.