The Hindu Business Line : Maharashtra wants coal blocks back from KPCL

FACED with the need to mobilise additional coal supplies to feed its power plants, the Maharashtra Government is likely to exert pressure on the UPA Government at the Centre to revert an earlier decision of the Coal Ministry to allocate a string of coal blocks located in the State to Karnataka Power Corporation Ltd (KPCL).

It is not known how far the State Government will go to get back its coal blocks, but it has taken a hard stand on the issue, especially in the light of the worsening power situation in the State.

The State Energy Minister, Mr Dilip Valse Patil, gave a hint of the State Government's stand, when he told Business Line that: "We have taken up the issue (of allocation of the coal blocks) with the Centre in order to retain control over the blocks." He made it clear that the blocks should remain with the State.

The State Government is under pressure from various quarters within the State to get back the coal blocks allocated to KPCL. For, while on one hand, it is considering to force joint ventures with the Chhattisgarh Government for coal linkages to feed its hungry power plants, on the other, large blocks of coal within the State have been allocated to KPCL.

The coal blocks that were earlier allocated to KPCL include the Baranj I to IV, Manora Deep and Kiloni blocks, located in Chandrapur district of Maharashtra — these blocks contain an estimated geological reserves of 152.52 million tonnes of coal. "Considering the power situation in the State, getting back these blocks will mean a significant development for the State," an industry source said.

The Opposition is, meanwhile, gunning for the State Government on the issue.

The State BJP President and Leader of the Opposition in the Legislative Council, Mr Nitin Gadkari, alleged that the Coal Ministry at the Centre had made the allotments under duress from the Congress high command. "The coal from these blocks is going to the Bellary thermal power plant," he said.

According to the sources in the Maharashtra State Electricity Board (MSEB), the allocation was also bitterly opposed by an ex-Chairman of the MSEB on the grounds of coal shortage in Maharashtra.

Confirming that these blocks have been given to KPCL, a spokesperson from the Ministry of Coal said that there is no restriction on one State body taking coal blocks from other State on lease. "These allotments have been made during the NDA regime and now as there is a power shortage in Maharashtra, fingers are being pointed at the allotments. Moreover, the coal blocks allotted to the West Bengal Government are located in Jharkhand," the spokesperson added.

To improve its deteriorating power situation, the Maharashtra Government is getting into a joint venture with the Chhattisgarh State Electricity Board. The partnership will yield coal linkages for Maharashtra from the South Eastern Coalfields Ltd controlled mines. They have also applied for captive mines in Radhikapur, West Bengal and Patrapada and Utkal (F) in Orissa.

If no capacity addition takes place in Maharashtra, the evening power deficit which is 3335 MW, will go up to 10,116 MW by the year 2011-12, leading to an debilitating load shedding.

To bring the load shedding to zero by the year 2011-12, the State will need an additional investment to the tune of Rs 56,005 crore.

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