Decks cleared for thermal plant
Rakesh Lohumi
Tribune News Service

Shimla, July 16
Decks have been cleared for setting up of the 500-MW pithead power plant in West Bengal with the Centre finally allotting a coal mine in Rani Ganj to the Himachal EMTA Power Corporation, a joint venture of the state-owned Himachal Power Corporation and the Eastern Mineral and Trading Agency (EMTA).

The mine, with estimated coal reserves of 131.7 million tonnes, will suffice for 30 years. The project had been hanging fire for the past over three years as the government took a long time to form the joint sector company on revised terms and conditions.

A fresh memorandum of understanding (MoU) between the Himachal Power Corporation and EMTA was singed three months ago.

The two partners in the joint venture will have a share of 65.85 million tonnes each in the coal reserves and the rest will be with the JSW Steel Limited which will develop the mine and supply coal for the plant on a predetermined rate.

The state power corporation and EMTA will be entitled to 250 MW of power each. The joint venture company will assign the power project to a third company on the basis of the tariff-based bidding to ensure transparency in the entire operation.

The successful bidder, who quotes the lowest tariff, will bear the entire cost of setting up the power station and the company will only provide coal from the mine allotted by the Centre. The power generated will be shared by the two partners equally.

The Himachal EMTA Power Corporation and JSW Steel Limited will form another joint venture for mining of coal. The new company will invite bids for mining to ensure transparency in the process and ensure that coal was available at competitive rates.

The thermal plant will help bridge the shortfall in availability of power during winter when generation from hydroelectric projects declined steeply due to reduction in discharge in the snow-fed rivers.