The sleepy industrial atmosphere in Angul district became active with the Monnet Power bagging the Utkal-C coal block in the second phase auction on Monday. The coal block located in Chhendipada block has a total reserve of about 123.8 million tonne of coal. The Monnet Power would utilise the coal for its 1,050-mw-capacity power plant at Angul.

Earlier, the Coal Ministry had allocated the Utkal-C coal block to the Utkal Coal ltd, a SPV formed by the Indian Metals & Ferro Alloys ltd (IMFA), on May 29, 1998, for a captive power plant (CPP) located at Choudwar near Cuttack. According to a status report submitted by the company with the Coal controller’s office, Rs155.90 crore has been paid towards land acquisition cost of the mining lease.

The Utkal C coal block has 156.55 hectares of forest land spread across four villages, Raijharan, Nandichhod, Similisahi and Golagadia. Families of these villages would be displaced for the mining activities. Meanwhile, the Citizen’s Action Forum (CAF) has sought people’s participation in the mining activities with a fair compensation, rehabilitation package and employment opportunities.

“The issues of mining activities, compensation and rehabilitation and environment protection will be discussed at a meeting on March 15 with local leaders, village representatives and NGO activists,” said CAF secretary CR Sahu. The Monnet Power also co-owns the Mandakini coal block with the Jindal India Thermal plant. The company had faced many hurdles to establish and commission the project for the last 15 years.