The Karnataka government has urged the Centre to consider allocation of coal blocks on a priority basis in order to complete and commission several pending thermal power projects.
Addressing the 57th meeting of the National Development Council (NDC) in Delhi, chief minister Jagadish Shettar said the state government has formed a separate company, Karnataka State Coal Mining Company Limited, to file applications with the ministry of coal for allocation of coal blocks under government quota as and when notified by ministry of coal.
He said, the state government-owned energy producer, the Karnataka Power Corporation Ltd (KPCL) has already invested Rs 2,238.74 crore in several power projects which are waiting for allocation of coal.
“Karnataka is facing severe constraints in the power sector on account of delays in providing coal linkages and environmental clearances,” Shettar said.
In order to provide reliable and quality power in a sustained manner to the growing economy, the state government plans to establish a number of power projects in public sector. In addition, efforts are being made to encourage private sector participation in power sector through bid route. Several coal-based thermal power stations have been planned in the public sector for which applications and detailed proposals have been submitted to Ministry of Coal for allocation of Coal Linkage.
The projects waiting for coal allocation include: 2x800 Mw Yeramarus Thermal Power Station, 1x800 Mw Yedlapur Thermal Power Station, 2x800 Mw Godhana Thermal Power Station at Chhattisgarh, 1x700 Mw Bellary Thermal Power Station - Unit-3.
In addition, the state has also planned two coal-based thermal power projects under competitive bidding route — Case 2 with a capacity of 1,320 Mw each at Gulbarga and Ghataprabha. Except Ghataprabha, the ministry of power has recommended for allocation of coal linkage to ministry of coal, the chief minister said.
Besides the allocation of coal for thermal power projects, the state government has also asked the Centre to allocate gas for its power projects. Karnataka has not been allocated gas for any power project so far. The KPCL has planned two gas-based power projects in Bidadi (2x700 Mw) and Tadadi (3x700 Mw).
“We understand that Reliance Industries Ltd (RIL) was awarded by government of India, two Coal Bed Methane (CBM) blocks in the Round 1 through International Competitive Bidding. Gas production from these blocks is expected to commence in the near future,” Shettar added.
The Government of India, while determining the price mechanism for the CBM Gas of RIL may favourably consider Karnataka’s claim for allocation of CBM Gas to meet the requirement of the gas-based projects implemented in the state,” Shettar added.
