The Odisha Coal and Power ltd (OCPl) would invest Rs 1,500 crore to develop the Manoharpur and Dip-Side of Manoharpur coal blocks to meet the fuel needs of a power project in Jharsuguda district.
The OCPl is a 51:49 joint venture (JV) between the State-run companies Odisha Power Generation Corporation (OPGC) and Odisha Hydro Power Corporation (OHPC).
The OPGC, the OHPC and the OCPl signed a shareholders’ agreement for the OCPl here on Thursday.
The OCPl was awarded the two coal blocks under the public sector undertaking (PSU) dispensation route for a 4×660 megawatt expansion project of the OPGC in Jharsuguda.
“We need Rs 1,500 crore to develop the two coal blocks. While Rs 1,100 crore would be met through loan to be raised from the Power Finance Corporation and Rural Electrification Corporation, the balance Rs 400 crore would come from the promoters,” said a Government official.
The OCPl was incorporated in January 2015 as a wholly-owned subsidiary company of the OPGC. later, the OHPC was also given a shareholding in the OCPl.
The OPGC will nominate four members to the OCPl Board of Directors and the OHPC three. The Energy Secretary will be the chairman of the company.
“The JV company plans to start the mine operation by April 2019 in accordance with the stipulations of the efficiency parameters of allotment agreement signed with nominated authority. Most of the major permits and clearances and regulatory approvals including environment and forest clearance are already in place for the project,” said Energy Secretary Rajesh Verma.
The total reserve of the two coal blocks is 531 million tonne (Manoharpur coal block 181 MT and Dip-Side Manoharpur coal block 350 MT).