KPCL in pact with 6 firms for coal block stake

The State Cabinet on Saturday approved the entry of Karnataka Power Corporation Limited (KPCL) into a joint venture (JV) with six other companies for securing a stake in the Deona-Pachmi coal block in West Bengal.

Alloted 382 million tonnes (MT), KPCL will hold a 18.2 per cent stake in the block which has 2,102 MT of coal. The JV will be formalised with the formation of a coal extraction and mine development company, spearheaded by the West Bengal Power Development Corporation (WBPDC).

The WBPDC will be taking the lead in the coal linkage company, which has been envisaged by leading law firm - Amarchand and Mangaldas. All the seven stakeholders are said to be either State government or Central government agencies which have been alloted portions of the coal block.

The mine will supply quality coal for three of the proposed thermal power projects in the State – Bellary Thermal Power Station (BTPS) unit 3 (700 MW); Yadlapur (800 MW) and Yermarus (1,600 MW) in Raichur district.

It is said that the coal from the mine will be utilised for the proposed projects, while the previous coal linkages from Coal India Limited will continue for the old power plants like BTPS (units 1 and 2) and the Raichur Thermal Power Station (RTPS).

The captive mine is likely to ease pressure on the State to purchase coal from the open market for the next 25 to 30 years, sources said.

At present, for the two thermal units of RTPS and BTPS, the State is utilising 81 MTs of coal per year.

Narendra Modi or Rahul Gandhi? Who will win the battle royale of the Lok Sabha Elections 2019

Get real-time news updates, views and analysis on Lok Sabha Elections 2019 on 

Like us on Facebook or follow us on Twitter and Instagram with #DHPoliticalTheatre for live updates on the Indian general elections 2019.

Liked the story?

  • 0

  • 0

  • 0

  • 0

  • 0