The Hindu Business Line : AP Minerals forms joint venture for mining in Orissa

Corporate - Alliances & Joint Ventures
Industry & Economy - Mining & Quarrying
States - Andhra Pradesh
AP Minerals forms joint venture for mining in Orissa

Our Bureau

The State Cabinet has decided to assign lands wherever feasible to the eligible heirs of the original assignees. State Govt settles payment issue with IPPs

Hyderabad , Oct. 31

The Andhra Pradesh Minerals Development Corporation and the Orissa Mining Corporation have formed a joint venture to take up mining at the Nuagaon Telisahi block in Orissa awarded by the Union Coal Ministry.

The estimated 750 million tonnes of coal from the mines would principally cater to the needs of the proposed 1,600-mw Krishnapatnam coal project developed by AP Genco. The remaining coal would be offered to other industries.

Addressing a press conference after the State Cabinet meeting here on Tuesday, the State Information Minister, Mr Mohd Ali Shabbir, said that the Government had recently approved a new coal policy and 28 coal blocks have been awarded to State Government undertakings.

As part of this initiative, the 50:50 joint venture between the two State corporations would take up mining. Alongside this, the APMDC has been allotted about six blocks for mining in the State. Regulatory issues are now being addressed.

IPPs

The State Government and the gas-based independent power producers have come to an agreement with regard to the deemed generation clause. Of the eight gas based projects under implementation, four have commenced production.

However, short supply of gas and consequent lower generation has meant that the State Government has to pay about Rs 1,200 crore even if these IPPs do not produce power. GAIL has expressed its inability to meet the current requirement due to shortage of gas.

While four projects - GVK, Lanco, Spectrum and BSES units - have gone into production, four others - GVK, Vemagiri, Konaseema and Gauthami, with total capacity of about 1,500 MW, are close to completion. Since there is likely to be a delay in supply of gas, all the four IPPs have agreed to the State's request with regard to payment under deemed generation, Mr Shabbir Ali said.

ASSIGNED LANDS

The State Cabinet has decided to assign lands wherever feasible to the eligible heirs of the original assignees. This move comes in the wake of a recent Government decision to acquire assigned lands that have been sold or not used for the purpose they were meant for.

The Cabinet decided that in addition to giving the land to the landless poor, such lands that were not used or were sold away, would be utilised for other public purposes.

FLOODS

The Cabinet reviewed the flood relief measures undertaken and decided to assign senior officials and the minister in-charge of the district to monitor relief measures.

The Andhra Pradesh State Film, Television and Theatre Development Corporation Ltd, Hyderabad, has been allotted 316 acres in Visakhapatanm district to develop a film city.

The site located in Kummaripalem, Kottavalsa and Annavaram is being allocated at a cost of Rs 50 lakh per acre.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Hind Latex enters vaccines business

Buddhadeb justifies land acquisition for Tata project

Foundation laid for coke oven plant at Haldia

Ascon Agro to set up meat processing export unit at Dhaniakhali

More flexibility in overseas deals

AP Minerals forms joint venture for mining in Orissa

Ruia in talks to buy ailing Tyre Corp

Hyundai's 3,00,000th export car