New Delhi: State-owned steel major SAIL has approached the Coal Ministry for allocation of two or three coal blocks under the government dispensation route for meeting fuel requirements of its captive power plants.
The company has identified 6 coal blocks -- three in Odisha, two in Chhattisgarh and one in Uttar Pradesh, and has sought allocation of at least 2-3 of them from the ministry, said a source.
The coal blocks identified by SAIL are -- Tentuloi, Ghogharpalli and Extension and Bankhui in Odisha, Puta Parogia and Pindrakhi in Chhattisgarh and Gand Bahera Ujheni block in Uttar Pradesh, the source said.
Noting that SAIL is expanding its total steel making capacity to 24 million tonnes per annum (MTPA), from 14 MTPA, he said that "the power and coal requirements are expected to be around 1800 MW and 12 MTPA respectively after the expansion. Due to this, the company has sought allocation of at least 2-3 coal blocks out of the 6 identified mines."
He added that SAIL has also been looking for gas allocation to set up a gas-based 1,050 MW power plant at Jagdishpur in Uttar Pradesh, though no commitment has been made yet by the Oil Ministry.
Steel Authority of India Ltd's power needs are about 1,000 MW. Of this, it meets about 70 percent power requirements from captive power plants.
For this, the company requires about 7 million tonnes of thermal coal and purchases almost entire quantity from Coal India.
The largest domestic steel producer is in the last leg of its Rs 72,000 crore modernisation and expansion programme and has started commissioning new units at its different steel plants. The capacity of the company is expected to become about 19 MTPA by this year and rest by 2014.
Last week itself, SAIL commissioned a coke oven battery at its Rourkela steel plant. It is looking at commissioning a blast furnace at the same plant in a month's time.
To meet its growing power requirements, NTPC SAIL Power Company Pvt Ltd (NSPCL), a 50:50 JV, is preparing feasibility report for setting up of another 500 MW power plant at its Bhilai steel plant and a 250 MW power plant at Rourkela steel plant.
The company has also been exploring options to set up 500 MW coal based power plant at Jagdishpur in UP.