KCR seeks allotment of coal blocks from Centre

Hyderabad, Feb 3 (INN): Chief Minister K Chandrasekhar Rao has requested the Centre to allot the coal and coal blocks based on the power requirements of Telangana State.

In a letter addressed to Prime Minister Narendra Modi, KCR said,' The Ministry of Coal has issued orders for allotment of 36 Coal Blocks to power projects, wherein end-use has been specified prescribing certain norms and parameters'.

'It is submitted that 2.5 MTPA coal is required for Kakatiya TPP Phase II, which is in accordance with the norms scheduled for commissioning in the later half of 2015. It was originally linked to Tadcherla-I coal block, which was subsequently cancelled in accordance with the Supreme Court judgment dated 24.9.2014.

This coal block requires restoration as this is one of the coal blocks listed for allotment now. It is also submitted that there exists a supply gap of 4.50 MTPS for existing power plants, which require coal blocks allocation.

Further, Singareni Collieries Co. Ltd. (SCCL) is constructing a power plant (2 x 600 MW) which would be operational by Dec., 2015 for which 6 MTPA is required. Another unit of 600 MW is being added to this and thus another 3 MTPA of coal would be needed,' he said.

In addition, the Chief Minister said, in order to overcome the severe power crisis faced by Telangana State on a long time basis, the State Government has undertaken an ambitious project to add 4,200 MW additional capacity in the next 4 years. Coal requirement for these projects is 21 MTPA. All these projects proposals have been at an advanced stage of financial closure, he said.

'I also wish to bring to your kind notice that according to Schedule XIII of A.P. Reorganisation Act, 2014, National Thermal Power Corporation (NTPC) shall establish 4,000 MW additional capacity in Telangana State after establishing the necessary coal linkages.

NTPC accordingly has finalized an expansion unit in its existing Ramagundam plant with a capacity of 1,600 MW (Telangana State Phase-I) and another plant with a capacity of 2,400 MW in Damaracherla, Nalgonda District (Telangana Phase-II).

An allocation of 20 MTPA per annum of coal would be required for these two projects. I have already brought this to your kind notice vide my letter dated 7.6.2014 and 6.9.2014,' he said.

The Chief Minster said Telangana needs 12.99 MTPA of coal in 2015-16; 21.79 in 2016-17; 29.79 in 2017-18; 48.74 in 2018-19 and 57 MTPA from 2019-20 onwards.

'Telangana is struggling with all its teething issues, energy deficit being the most important one. It is imperative that a kick start support is extended by Government of India in its take-off state. It is, therefore, requested that Telangana may kindly be allotted with the coal and coal blocks based on the State's power requirements,' he said in his letter.