Tangedco to acquire new coal mine in Odisha

It may be recalled that excavation in Chandrabila mines in Odisha which Tangedco successfully bid for in 2016 never materialised owing to various hurdles.
Representative image
Representative image

CHENNAI: Tamil Nadu Generation and Distribution Corporation (Tangedco) is set to acquire the Sakhigopal B Kakurhi mines in Odisha in June.

Located in Odisha’s Angul district, it cover 1,950 hectares and holds 421 tonnes of G7 and G9 grade coal, which has a calorific value of 4,500 to 5,200. Sources indicate a growing demand for coal in Tamil Nadu as Tangedco progresses with new thermal power projects in Uppur and Udangudi. Acquiring the Sakhigopal mines is essential to reduce its reliance on imported coal.

It may be noted that Tangedco has so far been getting domestic coal only based on MoUs signed with mines and fuel supply agreements. It may be recalled that excavation in Chandrabila mines in Odisha which Tangedco successfully bid for in 2016 never materialised owing to various hurdles. Tangedco recently gave up that project.

A senior official told TNIE, “The ministry of coal began auctioning 103 coal and lignite mines in March last year. Tangedco joined the bid for Sakhigopal mines. As no other company participated, the bidding was cancelled as per rules.” When the bids for Sakhigopal mines reopened in February this year, Tangedco was again the sole bidder. According to norms, if a single bidder remains in the second auction, the mine is automatically allocated to them.

Another official said, “The ministry assured us to expedite the process. We requested the allocation of Sakhigopal mines to Tangedco considering upcoming projects. The ministry has said the mines would be allotted in the second week of June, once the model code of conduct for the Lok Sabha election is lifted.”

Mine will be allocated as poll code ends

A Tangedco official said they have equested the allocation of mines at the earliest considering upcoming projects. The coal ministry has said the mines would be allotted in the second week of June, once the model code of conduct is lifted

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