Multiple legal fights and eight years later: First train with coal from Punjab’s own mine in Jharkhand chugs in

Mann said coal extraction at the mine, with total capacity of 70 lakh tonne per annum, has commenced. The coal at Pachhwara has only 32 per cent ash content as compared with 41 per cent in coal received from other sources.

He said with the resumption of coal supply, the PSPCL will save Rs 600 crore. He further said the state-owned power utility will also save another Rs 520 crore as it will no longer need to import coal.

He further said Rs 200-250 crore can also be saved if coal is supplied to private power plants in the state at cheaper rates.

PSPCL CMD Baldev Singh Sra said, “Savings shall increase further when Pachhwara coal is allowed for Talwandi Sabo and Rajpura thermal plants and the mining output is increased. Also, Punjab will not face any shortage of coal in future. The state spent Rs 520 crore on importing coal in the last fiscal”.

The Pachhwara coal mine was allotted to Punjab State Power Corporation Limited (erstwhile Punjab State Electricity Board) in 2001. PSPCL and M/s EMTA Coal Ltd. formed a jont venture company namely Panem Coal Mines Ltd and started supply of coal from the mine in March 2006.

However, the Supreme Court in 2014 cancelled 204 coal blocks, including Pachhwara. In 2015, the coal mine was reallocated to the PSPCL. The state had then floated a global tender, however the process was held up due to litigation in Punjab and Haryana High Court.

Later, in 2018, the PSPCL floated fresh global tenders and M/s Dilip Buildcon Ltd (DBL) and VPR Mining Infrastructure (VPR) consortium was selected and a coal mining agreement (CMA) was signed between PSPCL and M/s DBL Pachwara Coal Mine Private Ltd.

However, the execution of work order was held up as EMTA (prior mine developer and operator of PSPCL) filed a petition in Punjab & Haryana High Court.

The High Court vide its order dated January 25, 2019 directed that M/s EMTA would have the first right of refusal but it would not claim any benefit from the previous contractual agreements. PSPCL challenged the order in Supreme Court, but the hearing was deferred several times owing to the Covid-19 induced lockdown. In September last year, the SC set aside the high court order and decided in favour of PSPCL. The state took some time in getting permissions and approvals to commence operations but the residents of Pachhwara resisted the move. The dewatering of mine began in April this year and coal production from September. Due to agitation by transporters and vendors claiming previous payments relating to EMTA and law and order problems in the area, transportation of coal to railway siding could not be started for three months.

After various meetings with government of Jharkhand, local administration and Ministry of Coal, the transportation of coal began from December 2.

The government has now taken up the matter with Government of India for allowing use of coal from Pachhwara Central to Private thermal at Rajpura and Talwandi Sabo as coal cost of these plants is being borne by PSPCL. When the GOI allows this, more mining would be started from Pachhwara.

Sra said, “ Punjab will increase mining capacity in the coming years upto 15 lakh MT per year so as to get maximum benefits from mine and to meet the future requirement of coal.”

Mann said that he had raised the issue of discontinuing supply of coal through Rail-Ship-Rail (RSR) mode with the government of India. The CM said he had urged the Union Power Minister to review this decision and allow 100 per cent coal supply to the state through direct rail mode instead of RSR mode.