Goa is banking on critical power from the Chattisgarh coal block which seems nowhere near commencement
PPP entity created between GIDC and KSK Mahanadi power company
Draft Investment policy states that 100 MW of 270 MW expected through power generation from coal block to be available my mid June 2014. Ground realities are different
TEAM HERALD
PANJIM: The government’s claim in its Draft Investment Policy of getting the first consignment of 100 MW of power, generated from coal from the Chattisgarh coal block by mid-June, is likely to fall flat.
In fact the 270 MW of power that will be generated by the Public Private Partnership entity between M/s KSK Mahanadi power-company, and GIDC has entered into an agreement, will take a long time in coming. But the darkness lies elsewhere. Hardly anyone in the GIDC, or in the corridors of the secretariat are either aware of this mid- June claim or on the status of this power.
Herald has independently learnt during the course of working on this story, that KSK Energy Ventures, a group company of KSK Mahanadi has synchronized its first 600 MW unit of the KSK Mahanadi power plant with the national grid and begun power generation. However there is no word on whether this power will be fed to Goa. The reason why this is unlikely is that the MoU signed with KSK Mahanadi is for the supply power, of coal from the Gare Pelma Sector III coal block in Chattisgarh allotted to GIDC, by its $3.6-billion single location greenfield private coal-based power plant, when completed, will address the power requirements of Gujarat, Chhattisgarh, Goa and Andhra Pradesh.
While the environment clearance for the development of the coal block was given to GIDC (the GIDC and not the power department of Goa is the nodal agency) on May 23, 2013, there is a long list of conditions that need to be fulfilled for the development of this block, including a detailed Corporate Social Responsibility Plan. An amount of Rs 5 per ton of coal produced has to be earmarked for this.
Before this coal block is developed the rehabilitation and resettlement of five villages in Raigarh district of Chattisgarh where this coal block is based has to be completed along with the land acquisition process.
Interestingly, according to GIDC sources, the Gujarat Mineral Development Corporation too will be developing this block to augment the coal supply to the PPP between GIDC and KSK Mahanadi Power Company.
When Herald asked the Chief Minister Manohar Parrikar when this power would reach Goa he said, “We are on the verge of signing another PPA with the power company for the supply of power even before the coal block is developed.” Interestingly, no one in the bureaucracy or GIDC were aware that any such agreement was on the anvil.
Herald got in touch with the KSK Mahanadi company in Hyderabad and mailed them a set of questions last week on its agreement with GIDC and when it would be able to supply power to Goa. The company is yet to reply.
With the government just about managing its power requirements, the promised power from the Chattisgarh coal block is absolutely vital. So far there is very little confidence that power commitment specified in the Draft Investment Policy will be met.
