The Hindu Business Line : Damodar Valley Corpn faces coal shortage

THE Damodar Valley Corporation is facing a severe short supply of coal. The corporation's Durgapur generation facility is running only on a day's stock. The biggest generation station of 840 MW at Mejia has just seven days' stock.

Sources said production from its captive mines would alone support the proposed 1,000-MW second thermal power station at Durgapur and the existing Mejia thermal power station. The latter is proposed to be expanded beyond 1,000 MW.

In fact, DVC EMTA Ltd, a 26: 74 joint venture between Damodar Valley Corporation and EMTA Ltd, has approached Eastern Coalfields Ltd for geological and excavation reports to commence captive mining on DVC's behalf in three blocks.

The three blocks, with a combined reserve of 150 million tonnes, were awarded to DVC, which has been facing a coal shortage, in April.

DVC sources said production from the captive mines is expected to commence after two years. The Coal Ministry has already sought 24 months to prepare the geological and excavation reports, following which DVC will seek environmental clearance.

While the corporation is yet to receive environmental clearance for its greenfield venture at Durgapur, the Union Power Ministry had recently asked the company to consider setting up a 1,000-MW project at Ramgarh in Jharkhand, in case of any shortfall in the 11th Plan capacity addition target.

Though a pre-feasibility study for the project has already been carried out, DVC is not keen on the project.

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