GVK gets 'green nod' to import coal from SA for Punjab plant

Company is setting up a Thermal Power Plant at Goindwal Sahib tehsil in Tarn Taran district of Punjab

GVK Power (Goindwal Sahib) Ltd, a subsidiary of GVK Power and Infrastructure, has got permission from the environment ministry to import coal from South Africa as a 'stop gap' arrangement in case the company fails to get coal from its captive mines in Tosikud North Sub-Block in Jharkhand, according to official sources.

"As the Tosikud North Sub-Block mine development has been delayed due to reasons beyond control of the company, GVK proposed to use imported coal from South Africa (2.28 million tonnes per annum) as a stop gap arrangement to commission the plant operations. The EAC (Expert Appraisal Committee) has given permission to GVK to use imported coal for the plant for two years," sources said.

GVK is setting up a 2x270 MW Thermal Power Plant at Goindwal Sahib tehsil in Tarn Taran district of Punjab, and both the units have been synchronised to the grid.

A senior official of the power project developer said they have already received tapering coal linkage from Coal India to the tune of 1.5 lakh tonnes and half of it is expected soon.

"We have obtained permission from the government for the import of coal in case there is delay in production of our captive coal mine or Coal India fails to deliver (in future), then we will use the option to import coal. We are confident that our captive coal block will be operational by the end of this year and power production will also start," the GVK official told PTI.

The tapering coal linkage has been recommended by the Punjab government to the Ministries of Coal and Power, sources said.

"Tosikud mines are very much on schedule this year, we will certainly we get coal. We need some clearances from railways and other departments for sliding the coal from the mines to the plant. The coal from CIL will help us run the plant for a couple of months," the official added.

The Tokisud mines have 52 million tonnes of mineable reserves and are expected to cater to the requirements of 2.32 million tonnes per annum to Goindwal Sahib project.

It has also completed the construction of a bridge over Damodar river along with relief and rehabilitation colony with the commercial operations beginning, according to GVK annual report.

Last year, the Ministry of Coal issued show-cause notice to GVK for not meeting the deadlines with respect to development of the mine.