Date | Feb 23, 2016:
SK Acharya, Chairman, Neyveli Lignite in an interview to CNBC-TV18 said the government had allotted them Talabira-II and III coal mines in Odisha to meet their coal requirements for thermal power projects.
Acharya said the mines would provide them with 31.5 million tonnes (mt) of coal per annum which will be enough to meet our requirement for coal based power generation without depending on any import coming from abroad.
According to Acharya, the mining operations for the two mines will start after two years.
The company currently buys coal from Coal India and once they start producing their own coal from the mines, it would definitely turn out to be cheaper, said Acharya but could be cheaper by 20-25 percent.
Below is the transcript of SK Acharya's interview with CNBC-TV18's Sonia Shenoy and Anuj Singhal:
Q: Can you just take us through these details?
A: The company is going beyond its lignite mining and lignite based power generating base. In fact we are adding a lot on thermal power generating capacity based on coal. To meet its fuel requirement for the ongoing the coal based thermal plants the ministry has allotted two coal mines to us in the state of Odisha, that is Talabira II and III.
Q: With this will you meet all of your coal requirements for the power projects of your subsidiary companies?
A:
Yes. In fact we are adding something about 6000 megawatt coal based thermal generating capacity to existing 1000 megawatt coal based power plant that we have in Tamil Nadu. Our total coal requirement today is something to the tune of 31.5 million tonne per annum. Against that we have already got one mine in Jharkhand that is South Pachwara mine. That plus these two mines Talabira II and III will give us something around 31.5 million tonne per annum which will be enough to meet our requirement for coal based power generation without depending on any import coming from abroad.
Q: How much investments will you be undertaking now in this project in Odisha?
A: In Odisha 20.5 million tonne per annum coal mine blocks that we have got. This is in fact a virgin mine. We will have to do a bit with regards to the acquisition of the land and exploring the things over there. Mining operation will start around two years from now.
Q: So, two years from now is when the mining operations will start and 31.5 million tonnes per annum is your coal requirement which will now be met through this, right?
A: Yes met through this and also coal ministry has got a policy that once you get a mine allocated in your favour, now that coal production from Coal India is improving we have also been assured that we will be given a tapering coal linkage to match the requirement of our power projects supposing my mine development takes some time. So, till time my mine becomes fully operational and if the power project is coming up early, we will be getting tapering coal linkage to meet my running requirement of coal.
Q: Can you just give us the cost difference that one will see between mining from these captive mines versus an external purchase?
A: Difference will be there because we are now buying from Coal India and once we start producing from our own mines, it of course depends on so many variables that are there. It will be difficult to say by how much exactly cheaper it will be but definitely it will be cheaper to the extent of 20-25 percent.
(Source: http://www.moneycontrol.com/)