Odisha initiates steps to expedite coal mine lease applications

Asks allocatee companies to submit end-use plant status

The state mining department has initiated steps to expedite the processing of coal mining lease applications and asked the allocatee companies to submit status of their end-use plants.

In a letter addressed to the developers of Rampia and Mandakini A coal blocks this month, the department has asked the allocatees to submit details of power plants being promoted by them including the location of the plants.

Rampia coal block is allotted jointly to Sterlite Energy, GMR Energy, ArcellorMittal India, Lanco Group, Navbharat Power and Reliance Energy for captive purposes.

Mandakini A coal block, which has been awarded to Tata Power, Jindal India Thermal Power and Monnet Energy, has 322 million tonne reserves.

Both these blocks are yet to be mined due to delays at state and central government levels over grant of environment and forest clearances.

The situation was exacerbated after the coal block allotment scam, following which the state government opted not to process the lease applications to play safe.

In December last year, the Odisha government was asked by the Union Ministry of Coal to initiate due action on development of coal blocks till any irregularities surface.

The state government, meanwhile, has taken decision to expedite acquisition of land for coal mines and verification of coal mines boundaries. As per the decision, Odisha Industrial Infrastructure Development Company (Idco) will acquire land and Odisha Space Applications Centre (ORSAC) will carry out mapping the coal mine areas.

Besides, the state government has persuaded the central government to amend the check-list required to grant mining lease to include location of end-use plants.

The checklist, which was approved by the department recently, now makes it mandatory for the allocatees to furnish status of end-use plants linked to coal blocks.

Information on the end-use project should include capacity of the thermal or captive power plant (CPP) and up-to-date progress of the project regardless of whether it is located within the state or outside.

As of now, GMR has started its plant operation at Dhenkanal district while Monnet Energy is expected to complete plant construction by the end of September. All other companies are yet to acquire land for their respective plants.

The allocatees also have to provide particulars relating to date of allocation of the coal block, stake holding of the company formed to develop the coal block, area applied for lease, status of compliance to terms and conditions issued by the state government, consent to operate and establish from the State Pollution Control Board and bank guarantees. The latest move is expected to benefit corporate players such as Jindal Steel & Power Ltd-JSPL (Utkal B1 and Ramchandi coal blocks), Monnet Ispat & Energy (Utkal B2), Indian Metals & Ferro Alloys Ltd-IMFA (Utkal B2), National Aluminium Company-Nalco (Utkal E), Odisha Power Generation Corporation - OPGC (Manoharpur and dip side of Manoharpur) and Strategic Energy Technology Systems Private Limited (SETSPL), a joint venture between a consortium of Tata companies and Sasol of South Africa (north of Arkhapal and Srirampur coal block).