The Maharashtra Government is mulling over plans to establish a thermal power plant at the pithead of its allotted Gare Palma Sector II coal block in Raigarh district of Chhattisgarh, official sources informed on Monday. The proposed plant being planned by Maharashtra State Power Generation Company Ltd. would be of a total 2,640 MW installed capacity with four units of 660 MW each, sources stated.
Chhattisgarh is set to earn an estimated revenue of Rs51,596 crore from its five mines auctioned among 29 in the country under the provisions of Coal Mines (Special Provisions) Act, 2015 during the mining lease period. The specified end-users of the mines are in the non-regulated sector. The mines are Chotia, Gare Palma IV-4, Gare Palma IV-5, Gare Palma IV-7, Gare-Palma Sector-IV/8.
So far 29 coal mines have been auctioned under the provisions of Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder. This was stated by Piyush Goyal, Union Minister of State (Independent Charge) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha . The auction process for non-regulated sector viz.
Iron and Steel, Cement and Captive Power was based on forward bidding process where bidders had to submit their final price offer above the applicable floor price. In case of Power sector which is a regulated one, reverse bidding methodology was adopted where bidders had to submit bids below the applicable ceiling price, which shall be taken as fuel cost in determination of power tariff, he said. In case, bid price reaches Rs.
zero in reverse bidding, the bidding is based on additional premium payable to the concerned State Government, over and above the fixed reserve price of Rs100 per tonne, Goyal said. He further stated that revenue which would accrue to the coal bearing State Government concerned comprises of upfront payment as prescribed in the tender document, Auction proceeds and Royalty on per tonne of coal production. In addition, an estimated amount of Rs1,41,854 crores would accrue to coal bearing States from allotment of 38 coal mines to Central and State PSU’s, he said.