Coal-block allocation delay
The fate of several mega power projects in Jharkhand proposed by ArcelorMittal, Tata Power, Jindal Group, CESC and the Aditya Birla Group hinges on pending coal block allocations.
The Jharkhand government signed MoUs with 24 private parties for a generation capacity of 31,040 mw. Damodar Valley Corporation (DVC) and NTPC proposed to add 5,000 mw of fresh capacity in the state. Maithon Power, a JV between Tata Power and DVC, would set up a 1,000mw thermal power plant at Maithon.
This apart, Jindal South West Energy and Aditya Birla Power Co propose to add 3,000 mw and 3,200 mw of thermal power generation capacity, respectively in the state. The coal ministry has made it clear that priority on allocation of coal blocks be accorded to power projects with more than 500mw capacities.
A power ministry official said: “The ministry has shortlisted certain applicants for allocation of coal blocks and the Jharkhand government is not agreeable with this list. The power ministry has prepared the list based on certain criteria and wants particular blocks allocated for specific projects to which the states are not agreeable. This has led to some confusion and delay in allocation of blocks.”
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