Mahanadi Coalfields Ltd has
progressed with its plans of
setting up a supercritical
power project in joint venture with a
private power developer. With
significant response to the expression of
interest (EoI) stage, MCL plans to soon
invite requests for qualifications from
interested developers.
Speaking to Electrical Monitor from
Sambalpur in Orissa, a senior MCL
official explained that over 40
companies participated in the EoI
meeting held on August 11.
Subsequently, eleven companies
submitted their expressions of interest.
"We are working on the RfQ documents
and expect to issue them in October,"
the official said.
Those submitting EoIs include
prominent names like CESC, Lanco
Power, Indiabulls Power, Welspun
Energy, Jaiprakash Associates, BGR
Energy, Larsen & Toubro Gammon
Infrastructure Projects, ACB India,
among some others.
MCL, an Orissa-based subsidiary of
Coal India Ltd, has proposed to set up
a 2x800-mw supercritical pithead
power plant in the vicinity of its
Basundhara-Garjanbahal coal mines
in the eastern state. The JV partner
will be selected through the tariffbased
competitive bidding route.
Explaining this, the official said that
the project has been structured under
Case-2 of the tariff-based competitive
bidding guidelines. It may be
mentioned that power ministry
guideline made it mandatory for all
power purchases made after January
5, 2011, to be made using the tariffbased
competitive bidding route.
MCL will help the joint venture
partner with land, coal linkages and
some pre-project formalities. "The JV
partner will however have to make
arrangements for water supply," he
noted. MCL will pick up equity stake of
between 26 per cent and 49 per cent in
the joint venture company.
For MCL, this proposed power plant
will be a gainful diversification in the
power generation space. The official
explained that MCL has a long-term
plan of producing 34 million tonnes of
non-coking coal in 2016-17 from the
Basundhara-Garjanbahal mines in the
Ib Valley region, to which the power
project would be linked. Production
from this mine in FY12 is likely to be 13
million tonnes. Besides, MCL would
have an internal power requirement of
150 mw by FY17. The proposed power
plant would thus have a doublebenefit
impact on MCL — meeting its
captive power requirement, and
helping better commercial
exploitation of coal produced.
Mahanadi Coalfields Ltd, with its
command area in Orissa, is amongst the
seven wholly-owned domestic
subsidiaries of Coal India Ltd. The
others being Eastern Coalfields, Bharat
Coking Coal, Central Coalfields, South
Eastern Coalfields, Western Coalfields
and Northern Coalfields. In addition,
parent company Coal India Ltd has also
formed a subsidiary in Mozambique.