Even though it was formed with a 76-per cent Government share to supply coal to the Odisha Power Generation Company (OPGC) five years back, the Odisha Coal and Power Limited (OCPL) seems to not have served the purpose yet. Rather, the company has diverted from its own course, escalating its project costs.

The Union Ministry of Coal had allocated the Manoharpur and Dip side Manoharpur coal blocks to the OPGC in 2007. Then in OPGC, the Government and AES had 51 per cent and 49 per cent shareholding, respectively. But in 2015, the Union Government amended the MMDR Act following cancellation of coal blocks by the Supreme Court in 2014. According to the amended Act, coal blocks can be allocated to any Government company which has a minimum of 76 per cent share owned by the Government.

As the OPGC had no 76 per cent Government share, the State Government formed the OCPL in which the OPGC and the OHPC had 51 per cent and 49 per cent share. The OPGC’s 51 per cent share in the OCPL was shared by the Government and the AES in the ratio of 51:49 respectively. Thus, the OCPL fulfilled the criterion of 76 of Government shareholding to be able to get coal block.

The OCPL was formed with manpower obtained from the OPGC on market-based salary structure. These officers given management responsibility got individual salary of over Rs 25 lakh per annum. Though the company is now recruiting its own staff, they are getting much less salary and benefit compared to those on deputation from the OPGC.

Apart from huge amounts of salary given to deputed officials, time to time mining plan revision has also escalated the project cost. The coalmine was opened in 2018 and coal production started from September 2019. But, it has yet been able to supply coal to the OPGC.

The Merry go Round Rail Corridor (MGR) planned to transport coal from mines end to the power generation centre turned to be a major block of capital cost. It is expected that the MGR would not be implemented in coming two years as it is facing faulty land acquisition and decisions.

Further, the 16 MT CHP constructed by the OCPL at Rs 600 crore would go down the drain if the MGR doesn’t operate in one year’s time. It also contributed to escalating project cost.

Spending of Rs 143 crore for constructing a mines colony for 130 per cent permanent employees is too high and adds to the project cost only, viewed many.

Again, the OCPL has awarded a mining contract to the BGR Infra, Hyderabad in 2018, which was black listed by the NTPC earlier.

In absence of MGR, the OCPL has now obtained permission to sell coal to the MCL with a notified price as per grade of coal. The OCPL is manipulating he transolrting charges and claiming in the form of transporting charges from mines to siding. The cost transportation from mines to mines stockyard is already built in the mining fees to be paid to BG mining. However, the OCPL is charging an amount of Rs 35 per tonne more to the MCL.

At present, the OCPL has fund crisis and unable to pay contractors and the supply of coal to MCL is also stopped. However, irrespective of the fund crisis, the OCPL has floated a tender for road diversion of 1 km, cost of which is estimated at Rs 5 crore.