Odisha holds up land transfer for Mahaguj coal mine project

The project is to be developed by Mahaguj Collieries in Angul district at an estimated cost of Rs 20,000 cr

With the row over availing free power from thermal power plants and plants based on coal washery rejects yet to be resolved, the Odisha government has decided to put on hold land acquisition for the Machhakata coal mine project.

The integrated coal mining and power generation project is to be developed by Mahaguj Collieries Ltd (MGCL), a joint venture between Maharashtra Power Generation Company Ltd (Mahagenco) and Gujarat State Electricity Corporation Ltd (GSECL) in Angul district at an estimated cost of Rs 20,000 crore.

"Since land acquisition is a time bound process and declaration under Section 6 (1) has already been issued for part of the project area, Odisha Industrial Infrastructure Development Corporation (Idco) may be allowed to proceed with the land acquisition process in respect of the three remaining villages. However, land acquired for the project should not be handed over to the project developer until we decide on the quantum of free power", Odisha chief secretary J K Mohapatra wrote in a file note sheet.

MGCL proposed to set up 2500 Mw (10x250 Mw) power plant based on coal washery rejects.

The state government had urged the Union power ministry to allow 25 per cent free power from thermal power plants and 33 per cent from plants generating power from rejects of washed coal.

In response to the demand, the Planning Commission had engaged The Energy Resources Institute (TERI) to carry out a study on equitable sharing of benefits arising from coal mining and power generation amongst resource rich states. The objective of the study was to examine the impact of allowing free power at variable cost from coal based power plants in the host state.

The state government is now awaiting the report from TERI before taking a final view on the matter. The report is expected by December this year.

The Machhakata coal block awarded to MGCL has mineable reserve of 1244 million tonne. The block will have an initial mining capacity of 30 million tonne per annum (mtpa) that is to be subsequently ramped up to 50 mtpa. The mining lease is spread over 3023 hectares (ha).

Recently, MGCL had written to Odisha chief secretary, pressing for start of land acquisition in three affected villages- Machhakata, Sapoinali and Podapada, exclusively for coal mining project.

Ahmedabad-based Adani Group's flagship company Adani Enterprises has won rights to develop and operate this coal block. MGCL proposed to set up 2500 Mw (10x250 Mw) power plant based on coal washery rejects.

The coal mine project could not make any headway due to stiff resistance of affected people who have repeatedly disrupted public hearing.