Debdeep Chakraborty

The Ministry of Coal proposes to allocate four coal blocks of Talcher coalfield located in Odisha’s Angul district to government companies and corporations (utilities) awarded a power project on the basis of competitive bids for tariff.

Applications seeking allocation of the coal blocks, to be made under rule 5 of the Auction by Competitive Bidding of Coal Mines Rules, 2012, were recently invited from the eligible companies and corporations through respective state governments.

COAL-BLOCKThe four coal blocks proposed to be allocated are Karadabahal, Phulajhari East, Phulajhari West and Brahmanbil, all located in the Talcher coalfield.

The Karadabahal coal block, located in the north central part of the coalfield, has an area of 4.4 sq. km with likely coal resource of 600 million tonnes. Detailed exploration of the coalfield is in progress and additional 17 boreholes have to be drilled for a meterage of 8,000m as part of the requirement of detailed exploration. The grade of the coal seams is expected to vary between D & F.

The Phulajhari East coal block is located in the central part of the coalfield towards east of the already explored Tentuloi block. It has an area of 4.6 sq. km with reserve of 660 million tonnes. Regional exploration of the coal block is in progress. The grade of the coal seams varies between C & G.

The Phulajhari West coal block, also located in the central part of the coalfield, has an area of 4.6 sq. km with reserve of 660 million tonnes. The coal block has been regionally explored. The grade of the coal seams varies between C & G.

The Brahmanbil coal block, located in the north central part of the coalfield, has an area of 5.4 sq. km with likely coal resource of 410 million tonnes. Detailed exploration of the coal block is in progress and additional 10 boreholes have to be drilled for a meterage of about 4,500m as part of the requirement of detailed exploration. The grade of the coal seams is expected to vary between D & F.

Based on Useful Heat Value, non-coking coal is classified into grades A to G for commercial use. The grades A to C are considered superior and used in cement, fertilizer and sponge iron industries. The grades D to G, available in almost all coalfields, are considered inferior and used in the power sector.

The Ministry of Coal will examine the applications received in consultation with the Ministry of Power and thereafter earmark the coal blocks to the selected state government/utility for inviting competitive bids for tariff for award of the proposed power project under rule 5 of the Auction by Competitive Bidding of Coal Mines Rules, 2012. Those allocated the coal blocks will have to pay the reserve price as applicable under the rule.

While examining the applications, the Ministry of Coal will consider the demand-supply gap of the region or state and the preparedness of the state government in identifying the tariff based power plants for which the coal block is required.

The last date for submission of applications is January 10, 2014.


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