Lanco Infratech Ltd has bagged the mandate to be a mine developer and operator of Gare Pelma-II coal block of Maha Tamil Collieries Ltd (MTCL) and for development of 2,000 MW of thermal power plant in Raigarh district of Chhattisgarh.

The diversified infrastructure company managed to pip GMR, GVK, Jindal Power, L&T, Reliance Coal and Sterlite in the bid called by MTCL through a tender floated in July 2010.

TNEB venture

MTCL is a joint venture formed and owned by Tamil Nadu Electricity Board (TNEB) with 77 per cent stake and Maharashtra State Mining Corporation (MSMC) 23 per cent for exploring and developing the mine having geological reserves estimated to be 800 million tonnes.

“The bid envisages Lanco to develop and operate the coal mine and set up a 2,000-MW power plant,” Mr Nagaprasad Kodimella, Chief Executive Officer, Business Development, Lanco Infratech, said.

Mr Kodimella told Business Line that the project could mean an investment of Rs 12,000-13,000 crore.

The mine was awarded by the Government in 2006.

The Executive Chairman of Lanco Infratech, Mr L. Madhusudhan Rao, said this provides a good opportunity to develop and operate one of the largest coal blocks in the country and a large power project with 100 per cent domestic coal supply.

The Maha Tamil project offers 100 per cent coal supply required for the 2,000 MW project through the captive mine, saving the project from high fuel cost and also helping it avoid infrastructure and logistic issues.

Our Chennai Bureau adds: Under the agreement, the TNEB will get 630 MW at Rs 1.99 a unit. MSMC will get 23 per cent of the coal produced and the Chhattisgarh Government will get 740 MW. As a mine developer and power producer, Lanco will get 630 MW of power for merchant sales.

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