Post News Network
Bhubaneswar, April 21: Orissa Power Generation Company Limited (OPGC) and Orissa Hydro Power Corporation Limited (OHPC) Thursday entered into an agreement to form a joint venture firm for mining in Manoharpur and dip-side Manoharpur coal blocks by April 2019. Allotment order for these two coal blocks in Sundargarh district was issued by the Ministry of Coal on August 31, 2015. While OPGC holds 51 per cent stake in the newly formed entity, OHPC holds the rest. According to officials, around Rs 1,500 crore will be invested for development of these coal blocks.
“The state government has fixed April 2019 as the target year for these two mines to be operational. Coal produced from these mines will be supplied to 3&4 units of the company,” Principal secretary (energy) and chairman of OPGC, Rajesh Verma told reporters at the signing of shareholders’ agreement between OPGC and OHPC. “Around Rs 1,100 crore will be raised from lenders like Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) and the rest will be borne by promoters,” Verma said. Manoharpur and dip side Manoharpur will produce 8 million tonne per annum of coal in the first phase, which will be increased to 15 million tonne in the next phase.
Notably, reserves of these two coal blocks are estimated to be 531 million tonne. Coal from these two mines will meet the fuel requirement of 4×660 MW output expansion plan of OPGC. “OPGC plans to add 5th and 6th units with a total capacity of 1,320 MW after completion of third and fourth units,” Verma added.
