Nagpur | April 04, 2016: The state's power generation utility Maharashtra State Power Generation Company Limited (Mahagenco) has started the process to develop its first own coal mine — Gare Palma Sector-II — situated at Raigarh district in Chhattisgarh.

The plan is to produce 23 million tonne (MT) coal from the captive coal mine that can help generate 4,000 MW power. The project can ensure that Mahagenco faces no coal crisis especially for its new and upcoming units and also help in reducing power generation cost that may ultimately reduce the power tariff.

Mahagenco has initiated international competitive bidding process inviting private players to develop and also operate the mine. Tendering process started on March 31 and will complete in June. Mahagenco has also finalized mine plan of the project.

A Mahagenco official told TOI that the target set to start production is December 2018. "Ministry of coal had signed agreement with Mahagenco allotting the block on March 31, 2015. Deadline to produce coal from the mine is four-and-a-half years. Already, an application has been submitted with Chhattisgarh government to issue lease of land. We are hopeful to start production before the deadline," he said.

The official added extractable coal reserve is estimated at 656 MT as against total reserve of 1,059 MT. "Plan is to produce 23 MT coal from the mine. It can be an underground plus open cast mine project. Final decision to go for open cast and also underground or only open cast will be taken after finalizing private developer as cost increases for underground mining," he said.

The ministry of coal had allotted the block for the Mahagenco's new and upcoming six units — two 500 MW at Chandrapur Super Thermal Power Station, three 660 MW at Koradi and one 250 MW at Parli thermal power station. Already, one of three units at Koradi has been commissioned while remaining are expected to be commissioned in coming days.

Also, Mahagenco has proposed to construct new thermal power project with installed capacity to generate 3,000 MW in Gondia district.

Till beginning of production from the captive coal block, Mahagenco had sought coal linkage from the ministry. "We had shut down a few old units. We sought coal linkage, which was approved for old units, to continue for running new and upcoming units," the official said.

Mahagenco has two more blocks with it. It was allotted Bhivkund block in Chandrapur district on July 17, 2008 but could not develop it due to dense forest. Another block — Mahajanwadi — in the district with reserves of 340 MT was allotted last year. The agreement for the block is yet to be signed with the ministry. Mahagenco also had two more blocks — Macchakata and Chendi-II in Odisha but both were cancelled.

Currently, Mahagenco is having installed capacity to generate 11,237 MW of which 7,980 MW is from thermal power stations that run on coal. Total requirement of coal is 46 MT of which majority is supplied by WCL and rest by MCL, SECL and SCCL.

(Source: http://timesofindia.indiatimes.com/)