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Absence of any independent director in Coal India Ltd may delay board approval for Mahanadi Coalfields Ltd’s 1,600-MW maiden thermal power plant.
The MCL pithead power project which had been delayed for various reasons in the past, was ready to take-off once it gets approval from its own board and its parent CIL board.
“The board may take up the matter in the next meeting on September 17. Once it is cleared, it would reach the Coal India board for approval,” MCL Chairman and Managing Director A N Sahay had said.
But, since 50 per cent of the Coal India board strength remains vacant, the company may prefer to defer the decisions till new independent directors’ posts are filled.
Coal India board strength is of 14 members of which seven are for functional and seven are independent directors.
Currently, there are no independent directors on the board.
Former Coal India chairman N C Jha said technically the board can take decisions with 50 per cent strength, but it might not feel prudent to do it.
Ready with necessary infrastructure for the power project, Sahay said, “Once the CIL board gives its nod and clearances are received, it would take another three years for the power plant to come into operation.”
He said around 800 acres has already been acquired and water linkages are in place. The plant would utilise coal from MCL’s Basundhara coal mines.
