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Ahmadabad based Adani Group plans to sign a pact with the Odisha government soon for setting up of a 2,500 Mw rejected coal based power plant in Angul district.
“We are looking at couple of sites and the exact location will be finalised within few months. The investment in the project will be close to Rs 12,500 crore,” Rajesh Jha, CEO, Adani Mining & Power told media persons on the sidelines of an event here.
Within few months, a memorandum of understanding (MoU) would be signed with the state government in this regard, he added.
The power plant will source raw material (coal washery rejects) from the Machhakata and Chhendipada coal blocks. The group’s flagship company, Adani Enterprises Limited (AEL) has won the rights to develop and operate the coal blocks. The Chhendipada block with a mining capacity of 40 million tonne per annum (mtpa) is allocated to UCM Coal Company, jointly promoted by Maharashtra State Power Generation Corporation Ltd (Mahagenco), Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) and Chhattisgarh Mineral Development Corporation (CMDC) while the Machhakata coal block has been allocated to MahaGuj Collieries Limited (MGCL), a joint venture between Maharashtra State Power Generations Corporation Limited (Mahagenco) and Gujarat State Electricity Corporation Limited (GSECL). This block projects an initial mining capacity of 30 mtpa.
The land acquisition for the coal blocks by the Odisha Industrial Infrastructure Development Corporation (Idco) is in progress. Jha hoped that the land acquisition will be completed and blocks will be operational in about two years.
Currently Adani Group is implementing coal mining projects with total annual coal production capacity of around 110 mtpa. It aims to achieve 200 mpta coal mining capacity by 2020, making the group one of the largest mining conglomerates in the world.
The company is looking out for more business in coal mine development and operation. “As and when the mines are put into auction, we will participate,” Jha said.
