India’s MCL to present report for board approval of 1600MW power project

15 September 2014 (Last Updated September 15th, 2014 18:30)

Mahanadi Coalfields (MCL), a subsidiary of Coal India (CIL), is likely to present a detailed report for clearance of its first 1600MW thermal power project before the CIL board on 17 September.

Mahanadi Coalfields (MCL), a subsidiary of Coal India (CIL), is likely to present a detailed report for clearance of its first 1600MW thermal power project before the CIL board on 17 September.

Due to the absence of an independent director in Coal India, the board approval for Mahanadi Coalfields maiden thermal power plant may be delayed.

"The project, which will involve an investment of around INR100bn ($1.6bn), will be located in the Sundergarh district of Odisha."

MCL's first thermal project, which will incorporate two 800MW power generatoring units, has been delayed in the past due to several reasons.

However, the firm expects to commence the project following approval from its own board as well as that of its parent, reports Moneycontrol.com.

At the Mining, Geological and Metallurgical Institute of India seminar, MCL chairman and managing director A N Sahay said: "The board may take up the matter in the next meeting on September 17. Once it is cleared, it would reach the Coal India board for approval.

"Once the CIL board gives its nod and clearances are received, it would take another three years for the power plant to come into operation."

The project, which will involve an investment of around INR100bn ($1.6bn), will be located in the Sundergarh district of Odisha and is the maiden pithead thermal power project of CIL.

According to Sahay, the project has been delayed due to land acquisition and clearances from environment and forest departments.

MCL has already purchased 800a of land for the project and water linkages are already in place.

MCL plans to use coal from its Basundhara coal mines for the project.

The final use of the power produced from the projects is yet to be determined by the Coal India board.

Energy