Tangedco to float tender for mine in Odisha soon

CHENNAI: Ahead of the upcoming thermal projects in the State, the Tamil Nadu Generation and Distribution Corporation (Tangedco) is preparing to float an online tender for developing the Chandrabilla coal block in Odisha’s Angul district. The tender process would commence in a fortnight.

A senior official told TNIE that the Tangedco plans to mine one crore tonnes of coal a year from the Chandrabilla coal block over the next 35 years. The State-run power utility intensified its efforts to find a bidder for the project as they received a feasibility report in the first week of August.

The government is also in discussion with the Centre as the feasibility report by a private consultant recommended 250 metre-deep excavation to hit coal at the site. But mines usually digs only up to 50 to 100 metres. 

Another official said that the upcoming coal-fired thermal projects—North Chennai stage III, Ennore Special Economic Zone (SEZ) and Udangudi—were almost complete. Tangedco has also chalked out plans to commence operations of the North Chennai project in December and SEZ next year. Hence, the power utility needs to speed up the work to develop the coal mines in Odisha.

He added that 72,000 tonnes of coal was being consumed daily by the existing thermal power stations in North Chennai, Mettur and Tuticorin. “After North Chennai stage III and SEZ start operations, we must obtain at least 30,000 tonnes a day additionally,” he explained.

The Centre allotted the Chandrabilla coal block to Tangedco in 2016. But its development was affected due to non-issuance of clearance for exploration in the forest area by the Ministry of Environment, Forest and Climate Change. That is why Tangedco decided to extract coal in non-forested areas. Despite TANGEDCO floating tenders twice in the past, no bidder participated in it as the cost was extremely low.