State seeks coal linkage for OPGC

Keeping in view the expansion plan of Orissa Power Generation Corporation (OPGC), which is going to add 1320 MW (2x660) to its Ib valley power station, the state government has requested the Ministry of Coal for a tapering linkage.

“OPGC has already applied for tapering coal linkage to the Ministry of Coal. The project has also been recommended by the Union ministry of power to the Ministry of Coal for allocation of linkage. However, since a linkage review meeting is planned on February 14, 2012, it will be highly appreciated of OPGC's requirement is included within the 12th Plan projects for allocation of requested linkage quantity on priority,” the state Chief Secretary B K Patnaik has said in a letter to Coal secretary Alok Perti.

 

Tapering linkage is the short-term linkage which is provided to those coal consumers who have been allocated captive coal blocks for meeting the coal requirements of their linked end use plants (EUPs) in such cases where the production of coal from these blocks does not synchronize with the requirement of the EUPs.

OPGC, the only state owned thermal power generating station in Orissa, is currently pursuing capacity addition of 1,320 MW at Ib thermal located at Banharpalli near Jharsuguda.

OPGC has been allocated captive coal blocks- Manoharpur and Manoharpur dipside in Sundergarh district to support its capacity expansion plans. While the coal block along with dedicated rail corridor development is in advanced stage of progress, the power plant will be in a position to achieve financial closure and begin construction towards the end of 2012. The plant is expected to be commissioned by 2016-17 within the 12th Plan period.

The status of these coal blocks allocated to OPGC, which were earlier categorized as 'No-Go' area were changed to 'Go' category in June last year. This has led to delay in achieving certain project milestones, particularly forest and environment clearances.

It is anticipated that the coal mine would be in a position to achieve full capacity production two years after the commissioning of the power plant.

In the light of delay in production from the allotted coal blocks, the state government has sought tapering linkage from the Coal ministry.