Adani,Torrent to have 50% share each in Naini coal block

The state government has allotted the Gujarat Mineral Development Corporation’s (GMDC) Naini coal block in Orissa,to Adani and Torrent groups,a senior company official said.

Written by Press Trust Of India | Ahmedabad | Published: March 9, 2009 2:23 am

The state government has allotted the Gujarat Mineral Development Corporation’s (GMDC) Naini coal block in Orissa,to Adani and Torrent groups,a senior company official said. Both Guajarat-based companies will have 50 per cent share in the block,which was awarded to the state-run GMDC by the Centre in 2006. The state government has accommodated Adani group,which was refused to be given fuel by the GMDC earlier on account of higher price of power.

“Chief Minister Narendra Modi has cleared the file splitting the entire block between the Torrent group and Adani group,” said a top official in the state industry department.

He added that a long-pending issue involving three corporates engaged in energy generation and distribution has finally being resolved.

The state government has not approved GMDC’s prior agreement with the Hyderabad-based KSK Energy,which had signed a pact with GMDC to develop the block and set up a power plant on the pit head. GMDC was alloted two coal blocks,Morga in Chhatisgarh and Naini in Orrisa,in 2006.

Having procured the block in Morga,GMDC had signed a Fuel Supply Agreement (FSA) with KSK Energy for setting up a power plant of 1,750 MW at the pit head.

Under the agreement,GMDC will supply fuel to KSK,which would set up a power plant of 1,750 MW and sell power to GMDC,which in turn would sell power to the Gujarat Urja Vikas Nigam (GUVNL).

Subsequently,another block was alloted in Naini in Orissa. GMDC had signed an FSA with KSK.

The Adani group had signed a Power Purchase Agreement (PPA) with GUVNL for fuel supply for 1,000 MW for 25 years at Rs 2.35 per unit. But the then GMDC Managing Director C J Jose had refused to provide fuel to the Adani group contending that its price was higher than what KSK had agreed to in the FSA.

For all the latest Ahmedabad News, download Indian Express App

    Live Cricket Scores & Results