Bhubaneswar, Nov 13 (Odisha.in) Three State Power utility majors belonging to Orissa, Gujarat and Kerala Monday signed Memorandum of Understandings (MoU) among themselves, for development and exploitation of Baitarani West Coal Block jointly.
According to the MoU, the three state sector Companies would set up a joint venture company under the Special Purpose Vehicle (SPV) route for the development of the BW Coal Block with an estimated reserve of 602 Million tonnes.
The Coal Block situated in Orissa was allotted to the three state Public enterprises by the Union Coal Ministry in July last to enable them to use the coal on equal share basis for generating thermal powers, official sources said.
U.P.Singh, Chairman of Orissa Hydro-Power Corporaton (OHPC), Vijay Laxmi Joshi Chairman and Managing Director, Gujurat Poer Corporation Ltd and T, N.Manoharan, Chairman, Keral State Electricity Board signed the MoU at Orissa Secretariat in presence of state Chief Secretary, Ajit Tripathy and Development Commissioner, R.N.Bohidar.
Of the three state units, only Gujrat has the facility to use the coal at it’s Thermal Poer station – “Urja Vikas Nigam” to generate Power of its own, the two other state Enterprises have no such Hydro power Units.
The other two state units will have to arrange coal linkage to the agreed thermal power station, which will provide them power in return.
According to Energy Department sources, OHPC has plans to set up a mega thermal plant in the state soon in joint collaboration with another state Mineral giant- Orissa Mining Corporation.
The three parties have agreed to float a Joint venture Company soon and deposit a bank guarantee of Rs.75 crore with the Union Coal Ministry to operationalise the Coal block, which has already been prospected by the Central Mines
Planning and Design Institute, sources said.