Adani Group to acquire Orissa coal block; to pump in Rs8,000 crore
28 October 2010
The Ahmedabad-based Adani Group's flagship company Adani Enterprise has won rights to develop and operate the Chendipada coal block in Orissa. The latest 40-million tonne per annum capacity contract will make the Rs30,000-crore group the country's largest mining company in the private sector, with 110 mtpa.
The Orissa contract comes after the company won coal mining bids in Australia and Indonesia. The group is expected to pump close to Rs11,000 crore into mining, railway sidings, and a power plant.
Reports said the Adanis will set up a 2000 mw power plant to utilise the coal washery rejects. The plant will come up in joint venture with UCM that would see an investment of Rs8,000 crore. Adani Group and UCM Coal Co will hold an 89 per cent and 11 per cent stake respectively.
The group's venture Adani Power now has 18,500 mw of generation capacity under planning, and proposes to commission 2000 mw of additional gas-based generation capacity at Mundra.
A company statement said, ''The ministry of coal allotted Chendipada Coal Block in Talcher coalfield, Orissa with reserves of about 1600 million tonne jointly to Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL), Chhattisgarh Mineral Development Corporation (CMDC) and Maharashtra State Power Generation Company (Mahagenco) for captive mining of coal. UPRVUNL, CMDC and Mahagenco have formed a joint venture company UCM Coal Co for development and mining of the Chendipada coal block.
''Adani will undertake development and operation of the coal block, which includes land acquisition, R&R, preparation of a mine plan, approvals and clearances, coal mining, setting up of coal washery, establishing railway siding and delivering washed coal to end user at the designated power stations in UP, Chhattisgarh and Maharashtra.''
In the recent past, Adani group emerged as the successful bidder as MDO for total mining capacity of 70 MTPA of Mahaguj Collieries, Rajasthan Rajya Vidyut Utpadan Nigam and Chhattisgarh State Power Generation Company for various coal blocks in Orissa and Chhattisgarh. The coal production will commence within 42-48 months from these mines and its coal will be used as fuel by various thermal power stations in Maharashtra, Uttar Pradesh, Rajasthan and Chhattisgarh.