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Govt shortlists four mines to be awarded for power plants

Thursday, 09 Jan 2014

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The Ministry of Coal has shortlisted four mines in Orissa which will be awarded for the power projects.

The four mines are located at Talcher coalfields in Orissa. The ministry has invited applications from states interested in developing these projects. These projects will be open to both, government and private companies.

The mines will be accorded to the respective states, which will invite power developers to bid for the projects based on 'tariff.' The lowest bidder will be allowed to set up the power plant. The ministry plans to allocate the blocks in the current financial year.

Further, the states are expected to finalise the power developer for setting up the project by the first quarter of FY15. The states getting the coal blocks will decide the capacity of the power plant. Generally, a 1,000 MW power plant requires 4.5 million tonne of Indian coal every year. In addition to this, it will be the states' responsibility to secure all required clearances, and facilitate land acquisition. The Coal Ministry is not offering any in-principle clearances with the mines.