The State Government on Friday urged the Centre to take steps for auction of more coalmines for the non-regulated sector comprising steel, aluminium and cement industries and their captive power plants. In a letter to Prime Minister Narendra Modi, Chief Minister Naveen Patnaik informed that only one mine, Jamkhani, out of the nine coal blocks identified for auction in Odisha has been earmarked for the non-regulated sector. likewise, 10 coal blocks have been earmarked for allotment for the power sector.

Drawing the Prime Minister’s attention, Patnaik said 58 industries of Odisha have a total installed captive power generation capacity of more than 7,500 MW with an approximate annual coal requirement of more than 50 million tones. Of these, 13 larger industrial units with CPP’s of more than 100 MW alone account for 5,000 MW capacity.

Stating that these industries will be at a great disadvantage due to non-earmarking of adequate number of coal blocks, Patnaik said the disproportionately high extent of earmarking of the coal blocks for the power sector would not only affect the end-user mineral-based industries of the State, but also reduce the State’s revenue benefits due to the reverse bidding procedure followed for the power sector.

“While Odisha has about a quarter of the country’s coal reserves, out of the revenue of more than Rs 1 lakh crore from the coal blocks auctioned till now, the share of Odisha is expected to be less than one percent,” the Chief Minister observed, requesting the Prime Minister to re-examine the process of earmarking of coal mines for auction for the non-regulated sector.