J-V solution to coal, power crises mooted

BHUBANESWAR: The State Government on Saturday gave a proposal to Coal India Limited subsidiary Mahanadi Coalfields Limited (MCL) for setting up a coal washery and a coal reject-based power plant. The proposal came against the backdrop of the Government facing problems in getting good quality thermal-grade coal for its power plant at Banharpali in Jharsuguda district. “It has been historically seen that the quality of coal keeps varying depending upon season, quality of seam and location of mines. This varying quality of coal severely impacts the operation of power plant in terms of loss of generation, excess oil consumption to support boiler stability, tripping of boiler and high load on ash disposal and ash pond,” said Energy Secretary G Mathivathanan in a letter to  MCL chairman and managing director AN Sahay. The Ib Thermal Power Plant of the State- run Orissa Power Generation Corporation (OPGC) gets its coal from the Ib Valley coalfields of the MCL. The supply of poor quality coal has led to generation loss and frequent breakdown of the power plant adding to woes of the State reeling under  power crisis. The State Government has proposed to set up a 10 million tonne per annum capacity coal washery in joint venture (J-V) with the MCL. It has also given a proposal to set up a circulating fluidised bed combustion (CFBC) boiler-based power plant under J-V to add value to coal rejects from the proposed washery. “The operational model of the company can be decided by the two joint venture partners (OPGC and MCL),” Mathivathanan said. This will bring multiple benefits to all the stakeholders, he added. The proposed coal washery will improve availability of power to the State and capacity utilisation of the only thermal power plant of the Government. Besides, the MCL will sell the surplus washed coal at a premium.  “This will undoubtedly be a win-win situation for the MCL, the OPGC and the State Government,” he said and requested the MCL to consider the proposal in view of the enormous potential the two projects have.   Assuring full support to the proposed projects, the Energy Secretary said the OPGC managing director would submit a detailed project proposal and an operational model to the MCL shortly.