But long-term effect to be assessed
Even as the Supreme Court cancelled all the 32 coal blocks allocated in Odisha along with many other in the country on Wednesday, the State Government on Thursday claimed that the decision would have no immediate impact on power generation. It, however, admitted that the long-term impact on the power sector would have to be assessed.
“I don’t think that there would be any immediate impact of the apex court’s order in the State, particularly on the power sector. The NTPC, the OPGC and other independent power producers (IIPs) are already running on linked coal supplies. So, there will be no immediate impact, and we would be able to provide power to consumers,” said Energy Minister Pranab Prakash Das.
He, however, said the Energy Department would assess the long-term impact of the cancellation of coal blocks as many companies have invested in the power sector in the State.
The Union Ministry of Coal had allocated all the 32 coal blocks for captive consumption. While seven had already been de-allocated by the Ministry for the inordinate delay in their progress as per the recommendations of the Inter-Ministerial Group, the remaining 25 blocks now stand de-allocated after the apex court’s ruling. Out of the 32, only the Talabira-I coal block allocated to the by Aditya Birla Group-owned Hindalco Industries has commenced production.
It is to be noted that the State Government had signed MoUs with 28 power producers who had committed investments of over Rs one lakh crore. Together, they would have generated around 37,510 MM out of which the State’s share would have been 5,887 MM. But with the Supreme Court’s verdict, the production target would have to undergo a downward revision.
Three IPPs, Vedanta Group’s Sesa Sterlite (2,400 MW), GMR Kamalanga (1,050 MW) and Jindal India Thermal Power ltd (600 MW), have already commissioned their projects with a total capacity of 4,050 MW. It is estimated that about 60,000 MW of power would be generated by the existing and upcoming power plants in the State by the end of the 13th Plan period.
While the State’s demand would rise to 8,500 MW of power from the present amount of 3,500 MW by that period, there would be a surplus of 40,000 MW, which may be supplied to power-deficit States.