Thursday, October 28, 2010

Adani wins bid to develop, mine Orissa coal block

Adani Enterprises Ltd (AEL) has been selected as mine developer and operator (MDO) for the development and operation of the Chendipada coal block in Orissa, through global competitive bidding.

The block has an annual mining capacity of 40 million tonnes per annum (MTPA), a company spokesman said here this evening. The coal production will commence within 42-48 months' time from these mines. This coal will be used as fuel by various thermal power stations in Maharashtra, Uttar Pradesh, Rajasthan and Chhattisgarh. The Union Ministry of Coal had allotted the Chendipada coal block in Talcher coalfield, Orissa, with reserves of about 1600 million tonnes jointly to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (UPRVUNL), Chhattisgarh Mineral Development Corporation Ltd. (CMDC) and Maharashtra State Power Generation Company Ltd. (Mahagenco) for captive mining of coal. A joint venture company UCM Coal Company Ltd. (UCM) has been formed by UPRVUNL, CMDC and Mahagenco for development and mining of the Chendipada coal block.

The Adanis will undertake development and operation of the coal block, which includes land acquisition, relief and rehabilitation (R&R), preparation of mine plan, approvals and clearances, coal mining, setting up of coal washery, establishing railway siding and deliver washed coal to the end-user at the designated power stations in UP, Chhattisgarh and Maharashtra.

AEL is also required to set up a power generation project of about 2,000 MW capacity for gainfully utilising the coal washery rejects in joint venture with UCM, with the Adanis holding 89 per cent stake and UCM holding 11 per cent stake.

In the recent past, the Adani Group has won competitive bidding tenders as MDO for the total mining capacity of 70 MTPA of Mahaguj Collieries Ltd., Rajasthan Rajya Vidyut Utpadan Nigam Ltd. And Chhattisgarh State Power Generation Co Ltd. for various coal blocks in Orissa and Chhattisgarh. With this achievement, AEL has a total of 110 MTPA of coal mining contracts in India making it one of the largest mining company in private sector.

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