BL reported that Gujarat Mineral Development Corporation Limited, after getting the go ahead recently, is embarking upon exploratory work in the Naini coal block in Orissa shortly.
Also, GMDC expects the union government to allocate it an alternate coal block in Chhattisgarh in place of the Morga II block whose allotment was recently cancelled on environmental issues. The coal block in Morga II, Chhattisgarh, had been allocated by the Union Ministry of Coal to GMDC in August 2006.
With 350 million tonnes of mineable coal reserves in the block, GMDC had subsequently applied for prospecting license but the Ministry of Environment and Forest had, on June 22nd 2010, refused to accord forest clearance.
Mr VS Gadhvi MD of GMDC said that "We have now sought allocation of an alternate coal block and are hopeful of getting one soon in view of our ongoing plans for coal mining and power generation."
In 2007, GMDC had, jointly with the Pondicherry Industrial Promotion Development and Investment Corporation Limited, been allocated a coal block at Naini in Orissa with mineable coal reserves of 500 million tonne both the companies would share half of it With permission for exploratory drilling of 11 bore holes received on June 16th 2010, GMDC will start exploratory work there at the earliest.
In 2008, GMDC had planned to set up three coal based thermal power plants in joint ventures to generate 3,500 MW in Chhattisgarh and Orissa with an estimated investment of nearly INR 17,500 crore. Under the business model GMDC would supply coal to private parties who would, in turn, supply 2,750 MW to Gujarat as its share, by 2012.
One thirds of power generated would go to Orissa and Chhattisgarh, respectively. For its Orissa thermal power projects, GMDC had, with 26% equity, planned joint venture with the Adani and Torrent groups for a total generation of 1,750 MW at Naini, by allocating them 125 million tonnes of coal each. With its exploratory work at Naini to start soon, these projects are likely to be put on fast track.
For Chhattisgarh, it had executed coal supply agreement with KSK Energy Ventures Limited and Wardha Power Company Limited, both based at Hyderabad, for setting up of a 1,750 MW coal based project, based on coal to be supplied by GMDC at Morga II. But with recent cancellation of allotment, the strategy would have to be worked out afresh
GMDC had recently signed an MoU with the Ahmedabad based Rachana Global Excavations Limited to carry out mining in JV in Mozambique, through its Africa based Rachana Global LDA. Rachana had acquired licenses in Tete and Mutarara provinces of northern Mozambique. The total potential of this, and three additional areas identified, is believed to exceed one billion tonnes of coal reserves.
(Sourced from www.thehindubusinessline.com)
