NTPC writes to Power Secy, says 95% area is in forests
State to shortly approach Coal Ministry for alternate location
Mohinder Verma
JAMMU, Nov 24: Over five years after its allotment to Jammu and Kashmir and National Thermal Power Corporation (NTPC), exploration of huge coal block in Odisha has turned out to be unviable project from all the aspects. Due to this, State has been left with no other option but to approach Union Coal Ministry for allotment of alternate location for which steps will be taken shortly.
The coal block in Kundanli-Luburi area of Odisha was allocated to Jammu and Kashmir State Power Development Corporation by the Union Coal Ministry in the month of July 2013 for a period of 25 years. This block was allocated on the recommendations of the Inter-Ministerial Committee and under auction by competitive bidding.
The block having geological reserve of 130 and 266 Million Tonnes respectively was allocated to J&K for exploration jointly with National Thermal Power Corporation Limited keeping in view lack of experience of Jammu and Kashmir State Power Development Corporation and expertise of NTPC in this particular field.
Much hype was created over this decision of Union Government as it was for the first time in the history of J&K that any coal block was allocated to State’s key agency in the power sector.
“Following allotment of coal block, Power Development Corporation engaged M/s SBICAPS as consultants to carry out the viability and sensitivity analysis of various options and accordingly advise on the way forward essentially with regard to location of the end use plant”, official sources told EXCELSIOR.
The SBICAPS, country’s largest domestic investment bank offering the entire gamut of investment banking and corporate advisory, furnished a report mentioning that with a coal availability of 3.40 million tonnes per annum the installed capacity would be 660 Mega Watt.
“On the location of the thermal project, the SBICAPS conveyed to JKSPDC that net financial impact by locating the project in J&K vis-a-vis Odisha would be around Rs 700 crore per annum which translates to over Rs 18000 crore over the lifetime of the project”, sources said, adding in this way the consultants explicitly conveyed to the State Government that establishment of plant near mining site would be the most viable option.
However, much to the surprise of J&K Government, the exploration of coal block has been found as unviable project by the NTPC, sources said, adding “during detailed examination the NTPC’s experts have found the site in Kundanli-Luburi area of Odisha as 95% forest area”.
“As 95% of the site is in forest area several clearances from different quarters are required to be obtained before start of work on the project and this would be the time consuming exercise”, the NTPC has mentioned in a communication addressed to Principal Secretary to Government, Power Development Department J&K Government.
Sources further said, “since five years period has already lapsed and obtaining mandatory clearances from different agencies of the Government of India as well as Odisha Government would take several years not much benefit could be obtained from the coal block which has been allotted for 25 years”.
They disclosed that NTPC has suggested the J&K Government to make up mind for approaching the Union Coal Ministry for allotment of alternate coal block as starting exploration at the already allotted site would not be viable.
A senior officer of the Power Development Department, while confirming that NTPC has not put weight behind going ahead with already allotted site said, “shortly the matter will be brought to the notice of Governor Satya Pal Malik and following his approval Union Government will be requested for allotment of alternate site that without in shortest possible time”.
In response to a question, he said, “it is not our fault if the site falls in forest area. Moreover, the project has been found unviable by none else than the country’s largest energy conglomerate”, adding “NTPC has conveyed that it is ready to float Joint Venture with J&K State Power Development Corporation if any other coal block is allotted to us”.
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