Home ECONOMY Odisha mulls floating new PSU for coal blocks auction

Odisha mulls floating new PSU for coal blocks auction

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Bhubaneswar, Jan 2:

The Odisha government is planning to float a separate coal mining company to participate in the e-auction of coal blocks. It hopes to get at least 12 coal blocks in the state, Energy Minister Pranab Prakash Das said Friday.

Pranab Prakash Das, Minister Energy
Pranab Prakash Das, Minister Energy

“There is a proposal to float a separate coal mining Public Sector Undertaking (PSU), a fully owned subsidiary of Odisha Mining Corporation(OMC). However, the final decision is yet to be taken,” Das told IANS.

According to a state steel and mines department official, the company would bid for at least 12 coal blocks with a total reserve of 6,800 million tonnes located in the state. It will give a big boost to power generation in Odisha.

The new PSU may form joint ventures with various central government mining PSUs to develop the allocated coal blocks professionally.

The government is eyeing Manoharpur and Dipside Manoharpur, New Patrapada, Machhakata, Mahanadi, Baitarani East, Baitarani West, Naini, Chhendipada I, Chhendipada II, Rampia and Dipside Rampia coal blocks.

The coal blocks are necessary as the state government has lined up power projects to generate 14,220 megawatt (MW) in the state PSU sector and 37,220 MW by Independent Power Producers (IPPs), the official added.

During 1992 to 2010, the state was allocated 30 coal blocks for various state-owned PSUs and private companies. However, the Supreme Court de-allocated the blocks while de-allocating 204 coal blocks in the country. (IANS)