J&K govt gets a coal block in Odissa

Jammu and Kashmir government today said that the state has been allocated a coal block jointly with NTPC in Odissa by the central government.
Replying to a question of NC member B A Veeri in Legislative Council, Minister of state for Power Mohammad Ashraf Mir today said that Jammu Kashmir State Power Development Corporation (JKSPDC) has been allocated coal block (Kundnali, Lubri) in Odissa jointly with NTPC within allocated geological reserve of 130 and 266 million tonnes respectively.
He said the Union Ministry of Coal has put a condition that the allotment letter shall be issued to joint venture company to be formed by joint allottees and not to individual parties.

The allotment has been made for setting up of thermal power project, he said.
He said that in view of the decision of Board of Directors of JKSPDC engaged SBICAPS as consultants to carry out the viability and sensitivity analysis of various options.
He said that SBICAPS has furnished a report according to which the coal availability of 3.40 million tonnes per annum, the install capacity works out to be 660 mega watts for super critical unit.
However, the net financial impact by locating the project in J&K vis a vis Odissa is estimated at Rs 700 crores per annum which translate to over Rs 18000 crores over the life time of the project.

Draft joint venture agreement has been cleared by the Law Department of J&K, he said adding however, formal signing of agreement is yet to take place.