Date | Feb 25, 2015: PTI reported that Punjab power utility PSPCL is looking to retain Pachwara central coal block for meeting fuel requirements for its thermal power plants and has applied for this coal block, which is one of the 53 reserved for state-run power utilities.
A senior official of Punjab State Power Corporation Ltd (PSPCL) said that "We have applied for Pachwara central coal block and we are hoping that this block will be allotted to us as we have been using to its full capacity for our own plants."
Pachwara central coal block located in Pakur district of Jharkhand was earlier allotted to erstwhile Punjab State Electricity Board in 2002. The mine is currently being operated by Panem coal mines.
PSPCL, formerly known as Punjab State Electricity Board, had entered into an agreement with Eastern Minerals & Trading Agency (EMTA) to form a JV company Panem Coal Mines for development and operation of coal mine in 2001 while coal purchase agreement (CPA) was signed between PSEB and Panem in 2006.
State owned PSPCL's three coal-fired power generating units Lehra Mohabbat, Bathinda and Ropar with combined power generation capacity of 2,640 MW are getting about 7 million tonne of coal from Panem coal mines out of total annual requirement of 13.6 million tonne.
However, the Supreme Court in September last year canceled mining licences of over 200 coal blocks.
PSPCL official said that as many as 53 coal blocks have been reserved by the Centre for state-owned power utilities or companies for direct allotment. We are hoping that this allotment process may be over by the first week of March.
PSPCL has already deposited fine amounting to INR 391 crore as penalty levied by Supreme Court which had imposed at the rate of INR 295 per tonne of coal used.
Offcial said that "We have deposited fine of INR 391 crore which is as per 26% share in Panem Coal mines. The total fine as per SC order was worked out at INR 1,505 crore.”
Official added that PSPCL has also decided to change the mine developer cum operator (MDO) once it is allotted the Pachwara coal block. We will be replacing MDO after we are allotted the coal block.
(Source: http://coal.steelguru.com)