JOIN USThe State government on Friday decided to allow a company facing CBI probe to temporarily mine coal on its behalf at its captive coal block allocated in Maharashtra.
Energy Minister D K Shivakumar informed the Legislative Assembly that the government has no option but to extend the contract with EMTA to mine at Chandrapur coal block, Maharashtra, allocated by the Centre to the Karnataka Power Corporation Limited (KPCL). The company will supply coal to Bellary Thermal Power Station (BTPS) unit-1, he added.
“The CBI, which is investigating irregularities in allocation of coal block to KPCL, has filed FIR against EMTA on March 19. But the agreement signed by the KPCL with the company for coal mining will expire on March 31. If the agreement is not extended, supply of coal to BTPS will be stopped and there will be no power generation at the unit,” he stated.
The process to award new contract will take at least six to nine months. The BTPS unit-1 has been generating 500 mega watt (MW) of power. The State is already facing a shortage of power by 500 MW. If the generation at BTPC unit-1 is stopped, the problem of power shortage will worsen in coming days.
Though agreements have been signed to buy about 1,050 MW of power, the State has not been able to bring the power due to non-availability of corridor, the minister said and added that extending the contract with EMTA is the only solution in the interest of the State.
He said the government will simultaneously take up the process of awarding new tender. The Union government will soon issue a set of guidelines for this purpose. The existing contract with EMTA will be extended for nine months or till the time the new contract is finalised, he added.
The Supreme Court had in September 2014 cancelled the captive coal block allotted to KPCL at Chandrapura in Maharashtra following reports of irregularities. The Centre recently re-allocated the block to the State, he added.