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Tuesday, August 04, 2020

CIL, OCPL to tie up for sale of coal from captive block in Odisha

While the government has aimed to curb imports of thermal coal, India’s thermal coal imports stood at 183.4 million tonne (MT) in FY19 and are likely to cross 200 MT in 2020, according to estimates made by ICRA.

By: ENS Economic Bureau | Kolkata | Updated: December 24, 2019 5:04:07 am
Coal India Ltd, CIL Odisha government tieup, Odisha Coal and Power Ltd, CIL The coal produced by OCPL, instead of going for captive use only, will come into the entire system which even — if little — will add to the demand-supply chain.

Coal India Ltd (CIL) and Odisha government-owned Odisha Coal and Power Ltd (OCPL) have joined hands for sale of coal produced from OCPL’s captive block at Manoharpur in Jharsuguda as a part of initiatives of the central government to produce more indigenous coal available to country beyond CIL’s production and cut imports.

While the government has aimed to curb imports of thermal coal, India’s thermal coal imports stood at 183.4 million tonne (MT) in FY19 and are likely to cross 200 MT in 2020, according to estimates made by ICRA.

The coal produced by OCPL, instead of going for captive use only, will come into the entire system which even — if little — will add to the demand-supply chain.

The OCPL-produced coal is supposed to feed the (2×600 MW) IB thermal power plant of the Odisha Power Generation Corporation (OPGC), but in this case, though OCPL is producing just the required amount of coal OPGC needs for power generation, the coal cannot reach plant for lack of evacuation facilities.

So, the Coal Ministry has asked CIL to make such arrangements so that the required coal for power generation is made available to OPGC from nearby mines and CIL lift the coal from OPCL’s captive mines at Monaharpur.

In the wake of such a decision from the Ministry, the CIL board has worked out a modality wherein its subsidiary, Mahanadi Coalfields Ltd (MCL), has entered into an agreement with OCPL for creating a provision of lifting coal mined from Monaharpur and MCL in turn would supply to OPGC.

Manoharpur coal block has a capacity to produce 8 MT per annum, but as long as it is under development phase and does not produce, MCL through bridge linkage would supply OPGC 4.8 MT per annum for power generation.

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