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Our Bureau

Hyderabad, Nov. 15 The Centre has decided to allocate Rampia and DIP side of Rampia non-coking coal blocks located in Orissa in favour of Lanco Infratech and five other companies, including GMR, Sterlite, Nava Bharat Ventures and Mittal Steel, according to Lanco.

The allocation order, however, has directed the allottees to decide on the modalities for the allotment and the overall share in operation of these mines within a month. As per the proposals, each of these companies has been allocated coal blocks adequate to manage 1,000 MW of power plant each with Mittal Steel securing rights for 600 MW.

The Chief Financial Officer of Lanco Infratech, Mr J. Suresh Kumar, told Business Line “shortly, we expect to sit together and thrash out modalities of sharing as per business plans.”

Typically, a 1,000-MW project would entail investment of about $1 billion (about Rs 4,000 crore) and mines additional investment of about Rs 500 crore to Rs 600 crore.

According to Lanco, the coal reserves allocated would enable setting up of a 1,000-MW coal-based power plant. The allocation of these blocks in Orissa would enhance the capacity addition plans for Lanco.

Mr Suresh Kumar said that the company has already initiated work to develop another 7,500 MW capacity, including 100 MW expansion project at Amarkantak and Kondapalli gas power plant and other greenfield projects in Orissa, Jharkhand and Madhya Pradesh which are at various stages of implementation.

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