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Home News Power Sector News TNEB floats new company for coal mining in Chattisgarh

TNEB floats new company for coal mining in Chattisgarh

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CoalThe Tamil Nadu Electricity Board (TNEB) has floated a new company along with Maharastra State Mining Corporation to develop a coal mine and to set up up a 2,000 Mw power plant in Chattisgarh. The 74:26 joint venture company, called Mahatamil Collieries Ltd (MCL), is expected to involve an investment of around Rs 15,000 crore. Speaking to Business Standard, C P Singh, chairman, TNEB said that the newly floated JV company was for exploring, developing, mining and supply of coal from Gare Pelma II coal block located in Mand Raigarh district in Chattisgarh. The site is around 24.95 sq km.

Apart from developing a coal mine, the company will also set up a power plant with a capacity of 2,000 Mw. "It is better to use the coal for producing power, instead of bringing all the way to Tamil Nadu," Singh said.

A contract for detailed exploration was awarded to public sector company Mineral Exploration Corporation Limited. "Preliminary information stated that this mine will have a resource of 16 million tonnes of coal and MCL got it for for 30 years," said Singh. Reserves in the mine are estimated to be around 768 million tonnes.

MCL has called for tender for selection of mine developer and operator for exploration, development, mining and supply of coal, which will be used to generate power. The selected MDO shall also put up a power plant based on supply from the coal block. "Total outlay for the project is around Rs 15,000 crore and funding is being worked out," said Singh.

He said that the board also floated a joint venture along with the mining corporations of Orissa, Assam and Meghalaya to develop a coal mine in Orissa. "It's in a preliminary stage. We estimated the mine can supply 16 million tonnes of coal. Project cost and other issues are being worked out," said Singh.

TNEB's coal requirement is around 20 million tonnes, out of which linkage has been provided for 15 million tonnes and in principle approval has been given for another 12 million tonnes, said Singh.

Source- Business standard


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