CHENNAI: Tamil Nadu Power Generation Corporation Limited (TNPGCL) has invited tenders to select an exploration agency for conducting detailed studies in the Sakhigopal B-Kakurhi coal block, located in the Angul district of Odisha.
According to officials, the agency will handle key tasks such as surveying the mine area, preparing reports, securing environmental clearances and assisting in the selection of a mine developer and operator.
A senior TNPGCL official told TNIE, "This step brings the corporation closer to ensuring its own coal supply for upcoming thermal power plants. It will help us strengthen energy security."
The corporation acquired the coal block through an auction conducted by the Ministry of Coal. A development and production agreement was signed on July 15, 2024, and the allocation order was issued on September 5, 2024. Spread over 6.53 sq km, the block holds 421.44 million metric tonnes of G11 grade coal.
The official said identifying local habitation and families affected by the project will also be part of the agency's responsibility. The agency will also study available geological and mining data, conduct exploratory drilling, and take up geophysical, geotechnical and hydrogeological investigations. In addition, it must secure clearances from the environment and forest ministries and other departments concerned.
Bids can be submitted till September 24, and they will be opened on September 25.
TNPGCL requires about 223.40 lakh tonnes of coal every year to run its thermal power stations. At present, the corporation procures 195.63 lakh tonnes annually from Mahanadi Coalfields Ltd through a fuel supply agreement and another 25 lakh tonnes from Singareni Collieries Company Ltd under a memorandum of understanding. Together, these supplies cover 220.63 lakh tonnes of coal.
According to the official, once mining begins in the Sakhigopal B-Kakurhi coal block in Odisha, the shortfall in coal requirements can be met comfortably.
This is the second coal block allocated to TNPGCL. Earlier, on February 24, 2016, the Ministry of Coal had allotted the Chandrabila block in Odisha, which has reserves of 896 million tonnes. But the project failed to take off.
Explaining the reason, the official said, "The Ministry of Environment and Forest's regional office did not issue the prospecting licence due to the coal block's proximity to the boundary of a tiger corridor. Also, adequate land for dumping overburden was not given by the Ministry of Coal. So, development of the Chandrabila block could not proceed as planned."