Weekly News

Sasan Power Limited (SPL), which is currently involved in the development of 3960 mw Ultra Mega Power Project (UMPP) in Madhya Pradesh, has requested the coal ministry to allocate Semaria coal block. The company has been already allotted three coal blocks namely Moher, Moher-Amlohri extension and Chhatrasal in Singrauli coalfields by the coal ministry. It has called upon the coal ministry to allot Semaria coal block which is a small patch of coal deposit adjacent to Moher, in its south west. Coal seams of Semaria block are in continuation with the coal seams of Moher block and are separated only by an up throw fault. Semaria block is identified as Coal India (CIL) block. The total area of Semaria coal block is 2.39 sq km and the total net geological reserves are shown as 22.80 million tone with a strike length of only about 1.65 km. The width of the coal bearing area is only about 700 metre. If the total block is proposed to be worked by opencast method, the extractable coal reserves will be around 20 million tone and the average stripping ratio is about 6:1. Sources said the mining plan of Moher and Moher-Amlohri extension is already approved by the coal ministry in June. SPL has argued that the location of the coal field does not permit CIL to work as an independent unit as separate infrastructure will be required to mine this very limited coal reserves with high stripping ratio and difficult mining conditions. The company has said that it can economically exploit the block through the resources being developed for its working and it will be in a better position to develop this block along with development of Moher block as infrastructure created for Moher block will be gainfully utilised to develop the Semaria block. Also, no additional land will be required for overburden dump and other infrastructures. Semaria block cannot stand on its own in view of location constraint and prohibitive cost of production. From coal conservation point of view also, Semaria block will be better utilised to minimize mining losses and optimize use of infrastructure so created, the company added. Meanwhile, Lanco Infratech has appealed to the coal ministry for extension of time for submission of applications for allotment of captive blocks for coal to liquid (CTL) project. As per eligibility criteria the developer should have a minimum net worth of Rs 4,000...

Sanjay Jog
12th Aug 2008
Financial Express