ROURKELA: Failure of Mahanadi Coalfields Ltd (MCL) to open the new Siarmal mine has cast a shadow over its proposal for a coal-fired power plant in Sundargarh which has seen no visible progress in the last 11 years.MCL’s plan to augment coal output in the district has hit a roadblock as the project-affected people continue to foil attempts to open the new mine in Hemgir block.
Chairman and managing director of MCL OP Singh on Monday reportedly spoke about the company’s plan for setting up a 1,600 mega watt (MW) power plant in Odisha at a cost of `12,000 crore. The plant is part of MCL’s process of diversifying into power generation. Singh further said the power purchase process was being finalised with a few states for the purpose.
Sources said the proposal for the coal-fired power plant in Sundargarh was finalised in 2009-10 and a special purpose vehicle - Mahanadi Basin Power Ltd (MBPL) - was incorporated on December 2, 2011. By 2018, around 800 acre of land was reportedly acquired in Hemgir block for the project and preliminary process was initiated for statutory clearances along with approval for coal and water linkages.
A senior MCL officer said the MCL has now come up with a revised plan and wants a joint venture partner as it lacks expertise in power generation. Towards the end of 2021, discussion was held to rope in Nalco as a joint venture partner.
Sources said the life expectancy of the upcoming plant will be around 25 years and with the UN Climate Change talks stressing on phasing out of coal-burning power projects, the MCL should not make any further delay on its proposal.
Meanwhile, attempt to operate the Siarmal open cast project continues to be stalled by the affected people who closed the mine on January 4. MCL’s three operational mines in Sundargarh produce around 36.6 million tonne per annum (MTPA) of coal. The Siarmal mine alone is envisaged to reach peak capacity of 50 MTPA in next eight to nine nine years.
Hoping for early opening of the Siarmal mine, an MCL spokesperson said land for the power project was acquired long back and processes for statutory clearances would be revived.
Sundargarh ADM (Revenue) Abhimanyu Behera said he has no knowledge about the land acquisition status of MCL’s power project. The administration will hold discussion with the agitators for an amicable solution to allow operation of the Siarmal mine after the ongoing FIFA Men’s Hockey World Cup 2023.