HPGCL, IPGCL form joint venture for mining coal
The Haryana Power Generation Corporation Ltd (HPGCL) and the Delhi-based Indraprastha Power Generation Corporation Ltd (IPGCL) have formed a joint venture company for developing a coal block at Singrauli in Madhya Pradesh. The new entity, Yamuna Coal Company Pvt Ltd, will be based in Faridabad.
With demand for electricity increasing, the development of the coal block will help meet power generation requirements of Haryana and Delhi. If the new company works in accordance with schedule, both the two states can then avail of superior coal to generate power as early as possible.
The Ministry of Coal had allocated a coal block to HPGCL and the Delhi government, under the Government Company Dispensation Scheme.
The total area of the coal block is about 53 sq km and has an estimated reserve of 950 million tonne of coal, which would be enough to generate about 5,000 MW of power for 25 years.
The infrastructure development work required for the mining would be completed within three to four years.
Simultaneously, the process of setting up a thermal power plant would also be started to meet the growing requirement of electricity of consumers.
The new company would be responsible for prospecting, exploring developing, selection of mine developer and prospecting coal from the mine. The project shall be financed at a debt/equity ratio of 70:30.
There was also a plan to set up a 2,000 MW power plant at the pithead location, to avoid the hassle of transportation of coal for power generation.