Business Standard reported that Odisha and Kerala are set to tie up for setting up a 1,000 MW pit head coal fired power plant close to the Baitarani west coal block under Talcher coalfields in Angul district. The power project is estimated to cost INR 4,500 to INR 5000 crore.

The Baitarani west coal block with reserve of 600 million tonnes has been jointly allocated to Odisha Hydro Power Corporation, Gujarat Power Corporation and Kerala State Electricity Board.

An official source said that “OHPC and KSEB may forge a joint venture for setting up the power plant but the specifics are yet to be worked out. Site selection for the proposed coal-based plant is also pending but we are interested in putting up a pit-head plant to cut coal transportation cost.”

Earlier KSEB’s plan to establish a power plant in Odisha had got the cold shoulder from the state government. Odisha chief minister Naveen Patnaik had even written to the Coal ministry in January this year, stating that allocation of the Baitarani west coal block to KSEB was unjustified.

Mr Patnaik had stated to coal minister Sriprakash Jaiswal that “Use of imported coal from Indonesia will be a more appropriate proposition for Kerala, particularly when the ongoing power projects in Odisha are not able to get their coal requirement. Alternatively, Kerala may avail power through wheeling power from any of the ongoing MoU (memorandum of understanding) signed power plants in Odisha. Hence, allocation of Baitarani west coal block from Talcher coalfields to KSEB should be cancelled.”

But of late, the Odisha government has responded positively to KSEB’s proposal to set up a power plant through the joint route.

Source - Business Standard

(www.coalguru.com)