Coal boost: State bags two more big blocks

KOLKATA:Allaying fears of a generation cost push in thermal-based state power utilities in Bengal following the scrapping of coal blocks allotted to them, the coal ministry has restored the allotments to West Bengal Power Development Corporation (WBPDCL) along with bonus. The state power utility has got two fresh coal blocks with substantial reserve.
The blocks allotted to WBPDCL are Borjora, Borjora (north), Gangaramchak, Gangaramchak Bhadulia, Tara (east and west), Panchwara (north) and Kasta (east).Out of these blocks, Kasta and Borjora (north) were not with the state power utility earlier. The decision has come handy to the state power utility that would have to buy coal from other sources at a higher cost.
Prime Minister Narendra Modi had set the ball rolling after West Bengal chief minister Mamata Banerjee called on the PM seeking special support for the debt-stressed state. A release from the PMO claimed that the Centre has decided to give West Bengal the royalty on coal and other minerals. This will provide a benefit of Rs 1,600 crore to the state yearly. In addition, the state will get Rs 11,200 crore from the coal blocks that have been auctioned so far and there will be even more revenue in future.
Soon after the meeting with PM in Delhi, Mamata had a meeting with coal minister Piyush Goel. According to sources, Goel sought Mamata’s support in passing the Mines and Minerals Bill and also the Coal Mines Bill in the Rajya Sabha. As a quid pro quo, Mamata raised the issue of the coal block allotment to the state utilities.
Vivek Bharadwaj, the nominated authority for the auction and allocation of coal blocks told TOI that the requirement of West Bengal would be met through this allotment. The Centre had appointed Bharadwaj, the joint secretary of coal, as nominated authority earlier this year.
When contacted, the chairman and managing director of WBPDCL, Durgadas Goswami, welcomed the move. “We would not have got these mines back without the initiative of state government,” he added.
An official of WBPDCL added that these blocks might have a combined reserve of over 500 million tonne, which would be good enough to take care of the requirement of the state power utility for the next 25 years. “The coal requirement of WBPDCL is 20 million tonne per year with an optimum capacity utilization,” added the official. According to him, once the Sagardighi III and IV start operation, WBPDCL will have a generation capacity of 4,865 megawatt and with 85% plant load factor (PLF), the requirement will be 20 million tonne of coal.
Durgapur Projects Ltd (DPL), another state power utility, has already bagged the Trans-Damodar coal block, which was auctioned in February. DPL has won the block earmarked for the power sector by beating five other companies in the fray. These are: CESC, Essar Power Gujarat, JSW Energy and Lalitpur Power Generation Co.
Trans-Damodar is an operational open cast mine in the Borjora coal field of Bankura district. It has a geological reserve of 61.7 MT and mineable reserve of 48.4 MT and is within 10 km from Durgapur. The block was earlier allotted to West Bengal Mineral Trading and Development Corporation through state dispensation route. WBMTDC had extracted 1.08 MT through an operator Trans Damodar Coal Mining (P) Ltd.