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RfQs for MCL supercritical power plant soon

EM NEWS BUREAU ,  Tuesday, October 18, 2011, 15:41 Hrs  [IST]

Untitled - 56Mahanadi 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.
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