In the wake of an ultimatum by the Union Coal Ministry, the State Public Sector, Odisha Mining Corporation (OMC), has decided to deposit Rs121.80 crore in form of bank guarantee towards royalty share for a year to save the rejection of the Nuagaon-Telesahi coal block. According to OMC Chairman and Managing Director Saswat Misha, the State PSU would deposit the required bank guarantee with the Union Coal Ministry soon.
Sources said the Union Coal Ministry had allotted Nuagaon-Telesahi coal block to the OMC and the Andhra Pradesh Mineral Development Corporation on a 50:50 share basis way back in 2006 for its development. As per the provision, the coal block was to be developed by May, 2012. But due to negligence on the part of the two lessees, the coal block could not be developed forcing the Union Coal Ministry to review the allotment.
The Coal Ministry which formed an Inter-Ministerial Group (IMG) to review the status of all the coal blocks allotted to various companies both in public and private sector for development, had however, been recommended that instead of rejecting the coal blocks, the companies should be asked to pay at least one year's royalty for regularisation of the blocks.
The OMC, appearing before the IMG sitting in New Delhi in October last year, had pleaded not to reject the Nuagaon -Telisahi joint venture coal block in Angul district for the fact that the an estimated Rs16 crore had already been spent towards survey and other related pre-mining activities. The OMC had also given an undertaking that the coal block in question would be developed fully by February, 2015.
Accordingly, the Coal Ministry, in a letter on Tuesday last, had asked the OMC and Andhra Pradesh Mineral Development Corporation to deposit Rs243.60 crore towards the royalty for a year within three months failing which the coal block would be rejected.
It may be recalled that due to inordinate delays in development of coal blocks allotted to the OMC, the Coal Ministry, on the recommendation of the IMG, had already rejected the Utkal -D and Mandakini B coal blocks. While reviewing the progress regarding carrying forward of policy directions concerning coal mines and coal blocks in a high level meeting, Chief Secretary Bijay Kumar Patnaik asked to complete the first draft report of a comprehensive master plan (CMP) for the coal bearing areas by end of April and submit it to the Government by first week of May next. The Central Mining Plan and Design Institute (CMPDI) has been authorised by the IDCO to prepare the CMP, which will reflect the blue print of the alignment of roads, railway lines, rehabilitation sites along with other infrastructural and service-based infrastructure.
Patnaik advised the Steel and Mines department officials to develop time lines for setting up of End Use Plants (EUP) of the coal blocks meant for use within the State. The Chef Secretary also asked the authorities to expedite progress in development of common corridor project worth Rs8,000 crore for Angul-Chhendipada-Talcher coal bearing areas for transportation of coal.
According to official sources, in order to expedite the project, a core committee has been formed under the chairmanship of Principal Secretary to Government, Steel and Mines department with other senior officers, representatives of RITES and CMPDI.
It said that one SPV has been formed under the banner of Mahanadi Railways for carrying on the project by the IDCO. The SPV has been formed as a Public limited Company. The projected traffic of the common corridor has been estimated at 137 MMPTA. It will have a rail-link of 163 km with 308 minor bridges and 77 major bridges. It will have seven loading yards and six rail-flyovers. The cost of the project has been estimated around Rs5,500 crore, excluding the cost of land acquisition.
Sources said that the required land for development of the corridor has been projected at 7,950 acres. It has been decided that the project will be developed in two phases. In the first phase, 104 km of rail link will be developed connecting Jarpada- Tentuloi-Nuagaon-Angul-Patrapada.In the second phase, 163 km long corridor will be developed connecting Mandakini to Buddhapanka. It has been targeted to start the construction of the first phase during 2014-17 and commission it by 2017-18. The second phase has been targeted to be commissioned during 2023-24, sources said.