Coal India unit MCL to set up ₹12,000 crore power plant in Odisha
With an intention to diversify in the power sector, Mahanadi Coalfields Ltd (MCL) is finalizing the power purchase agreement with some states. O P Singh, the Chiarman-cum Managing Director of the company announced the setting up of coal based plant with an investment of around Rs. 12,000 crores in Odisha.
“We are into process of diversifying into power generation… The power purchase agreement is in the process of getting finalised with a few states,” Singh told reporters in the Sambalpur district of Odisha.
The CMD added that the Coal India arm subsidiary has applied for the coal linkages for its proposed 1,600-MW coal-fired power plant. The application is made to the government and the allotment is yet to be completed.
While explaining the government’s view of the diversification plans, the top officer of the company added that the government is also advising to diversify “so they are definitely with us.”
Currently, the ‘mini ratna’ public sector enterprise has 18 operational mines including 15 open-cast mines.
Not just in power, the company is also planning to diversify into the aluminum business. O P Singh said that for the aluminum business, the company is in process to get the allotment for the bauxite block. Bauxite is the most commonly used raw material to produce alumina for the production of aluminum metal.
According to the CMD, the tentative size of the mine is expected to be 3 million tonnes.
Singh also talked about the performance of the Sambalpur-headquartered company. He said that the MCL is currently ahead of its target of 176 MT and will produce 190 MT of coal by the end of the fiscal year.
In the fiscal year 2021-22, the production of the company shot up by 14% as it clocked a record production of 168 MT.