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Tata Power seeks diversion of surplus coal

Tata Power, the country's largest private electricity generator, has sought approval for a plan to divert surplus coal from one plant to another.



New Delhi: Tata Power, the country's largest private electricity generator, has sought approval for a plan to divert surplus coal from one plant to another.

Tata Power is seeking to divert coal from its Mandakini captive mine in Odisha to the 1,050 MW Maithon project in Jharkhand, which it operates in partnership with Damodar Valley Corporation, the utility said in a letter to Planning Commission (Member) B K Chaturvedi.

"Surplus coal from Mandakini coal mine can be allotted to our Maithon thermal power project as it faces coal shortage, otherwise Maithon will have to resort to imports," it said.

The company said the Mandakini coal block in Angul district of Odisha is scheduled to start production before the associated 660 MW Naraj Marthapur plant is commissioned.

"The Mandakini captive coal block has been jointly allotted to us along with Monnet Ispat & Energy and Jindal Photo with equal share in coal output," the company said.

Tata Power said that it would prefer that the surplus coal from Mandakini be diverted to the Maithon plant as a stop-gap arrangement.

"We would appreciate the conceptualisation of this possibility, as it facilitates optimum utilisation of an operational generating facility," Tata Power said, urging the plan panel to put forward the necessary recommendations to the Central government.

A committee headed by Chaturvedi is looking into the coal distribution policy and will suggest ways to enhance captive coal mine production.

The request for allocation of additional coal from the Mandakini block for the Maithon project is to benefit customers and not promoters as the power produced from the plant is in turn supplied to the states with CERC-regulated pricing, Tata Power said in a statement.

The reason for the request for additional coal is to bridge the gap in availability of coal to the plant. Since price of power is capped and completely regulated, it is directly beneficial to the customers, it added.

PTI

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