M A I N   N E W S

De-allocation a blow to HP’s proposed thermal plant
Pratibha Chauhan/TNS

Shimla, September 17
The Himachal Pradesh Government's plan to set up a 500-MW coal-based thermal plant in public-private partnership is in limbo. The Inter-Ministerial Group (IMG) has de-allocated the coal fields given to it at Raniganj in West Bengal as a joint venture.

The allocation was made to the state in 2007 and the Kolkata-based Eastern Mineral and Trading Agency (EMTA) under the name of the Himachal EMTA Power Limited (HEPL). It was to be a 50-50 venture with the signing of a tripartite agreement between the Himachal Pradesh Power Corporation Limited (HPPCL), EMTA and HEPL.

The state Government had invested about Rs 2 crore in the project in the form of equity and a bank guarantee. Official sources pointed out that the government had made some additional changes in the agreement sometime back to ensure transparency in the bidding of coal-mine operations and the power plant and prevent chances of windfall profits. "We are yet to receive any official communication. Since we have learnt of the IMG recommendation of de-allocation, we plan to take it up with the secretary, Ministry of Coal," said Himachal Chief Secretary S Roy.

Sources said the state government had approached the Coal Ministry seeking alternative coal fields as almost 50 per cent of the area allotted was densely populated, making it difficult to work.

The coal block for the project is located in the Raniganj coalfield and has a geological reserve of 129.15 million tonnes of thermal coal. Gourangdih Coal Limited (GCL) has been incorporated and it plans to develop a 500-MW (2x250 MW) coal-based pithead thermal power plant in phases.