Coal India the world's largest coal producer plans to take a proposal for setting up a INR 9,000 crore power plant in Odisha to its board for approval in the next couple of months. The 2x800 megawatt plant at the mouth of a coal field in the Mahanadi basin will mark the coal producer's foray into the power sector.
Mr S Narsing Rao CMD of Coal India said that the company is looking at setting up power plants at mines from where evacuation of coal in the absence of road and rail transport in these terrains is difficult.
A power transmission line from the plant to the nearest electricity grid is easier and less costly to build.
Mr Rao said that "Right now I think 1 power plant in Mahanadi is at the approval stage. The investment proposal for the 1,600 MW Odisha, I think in couple of months should be finally approved."
Coal India arm Mahanadi Coalfields Ltd will set up the 1,600 MW super critical thermal power plant in Sundargarh district of Odisha.
He said tha "The project would take up to 4 years to begin generating electricity. Typically a size of 800 MW takes 42 months for the first unit and 45 months for the second unit. Normally it should take four years."
Mr Rao said that approval for the INR 9,000 crore project from the board would take some time as it was still awaiting environmental clearances among others. He said that "Because environment clearance et, are required it is still in the process. It's going on."
He indicated that the maharatna firm is also exploring the possibility of setting up power plants at all those places where they produce coal but due to lack of infrastructure, the fossil fuel cannot be transported.
He said that "There are some places where I can produce coal but am not able to supply that coal to consumers because of infrastructure problems. So such places we are exploring the possibilities of setting up the power plants."
Source – Zee News