BHUBANESWAR:The State-owned Odisha Coal and Power Limited (OCPL) will furnish bank guarantee and make part payment of the upfront amount before April 30 to the Ministry of Coal for allotment of Manoharpur and dipside Manoharpur coal blocks.
The newly-floated OCPL, a joint venture company of Odisha Power Generation Corporation (OPGC) and Odisha Hydro Power Corporation (OHPC), has been awarded two coal blocks under the public sector undertaking (PSU) dispensation route.
Though OPGC was allocated the same coal blocks under the Government dispensation route by the previous UPA Government, the two blocks were among 204 coal blocks deallocated by the Supreme Court in August last year.
Meanwhile, OCPL has signed allotment agreement with the Coal Ministry for the two coal blocks for OPGC’s 1320 MW expansion plan at Ib Valley thermal power station.
As per the Coal Mine Development and Production Agreement, the successful allocatee needs to provide a performance bank guarantee equal to the aggregate of one year’s royalty and the annual peak rated capacity of the mine multiplied by winning bid amount.
The coal block owner will conduct mining operations at the coal mine in accordance with the milestones or efficiency parameters. Failure to comply with the efficiency parameters would result in appropriation of the performance security.
Sources in the Energy Department said now OCPL has to submit a ‘Commencement Plan’ about starting mining operations. The plan will form the basis for the user agency to follow the timeline to achieve peak rated capacity of mine.
“If everything goes as per plan, OCPL will start coal production by May or June of 2017,” the sources said.
Before cancellation of the two coal blocks, the State Government had sanctioned 1041.76 acres out of 1,190.60 acres of land applied by OPGC. Similarly, 825.72 acres of 1,362.35 acres of private land were also sanctioned for the coal mine development.
The OPGC has already tied up funding of Rs 8,660 crore from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) by executing a loan agreement with the two Central PSUs.
Central PSU Bharat Heavy Electricals Ltd (BHEL) has bagged engineering, procurement and construction contract worth Rs 4,051 crore from OPGC for supply and erection of the main plant while the Balance of Plant (BoP) contract valued at Rs 1,573 crore was bagged by BGR Energy.
The State Government has a stake of 75.1 per cent in the newly floated company while the balance 24.9 per cent is held by AES Ltd, the minority shareholder in OPGC.