Financial Daily from THE HINDU group of publications
Friday, Feb 11, 2005
Financial Daily from THE HINDU group of publications Friday, Feb 11, 2005 |
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Industry & Economy
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Power Coal India, ONGC plan to set up 200 MW power plant Archana Chaudhary
Mumbai , Feb. 10 AS part of their proposed joint venture, ONGC and Coal India Ltd (CIL) plan to set up a 200 MW power plant that will use gas produced from gassified coal. This will be the first ever project of its kind in India where gassified coal will be used. The two companies may form a special purpose vehicle (SPV) to execute the project, which may cost up to Rs 600 crore, said a senior ONGC official. The two companies are expected to sign an agreement for the venture in which CIL and ONGC will have equal participation both in terms of investment and benefits in the coming week, the official added. The two companies are looking at two ventures together. The first one will involve producing gas from coal found at depths of more than 600 metres and is as such inaccessible for mining. The procedure involves burning deeply embedded coal by injecting oxygen-enriched air and then injecting steam to produce gases such as hydrogen, methane, etc. ONGC has some experience in using similar technology for burning heavy oil - in places such as Mehsana in Gujarat - to reduce its viscosity, the official said. The two companies will sign another agreement for a joint venture on coal bed methane. The Government had allotted two blocks, one in Ranigunj and another in Jharia coalfield, on nomination basis to the consortium of CIL and ONGC. Petroleum exploration licence for both the blocks had been obtained from the respective State Governments. The SPV will look at acquiring coal blocks in India and overseas by participating in global bids for allocation of coal blocks abroad.
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