The state government has already written to the Ministry of Coal to allocate the Patrapada coal block with reserves of 1,042 million tonnes to OMC for commercial mining. Patrapada is one of the 10 Schedule-I coal blocks listed by the Ministry of Coal for non-regulated sectors. The remaining blocks identified are Nuagaon-Telisahi, Talabira II, Utkal, Biatarani West, Mandakini B, Rampia and dip side Rampia, Ramchandi promotional coal block and North of Arkhapal and Srirampur coal block.
The state government argued that allocation of a commercial coal block to OMC would facilitate sale of coal to non-regulated sectors.
There are 56 captive power plants (CPPs) of iron and steel and aluminium industries in the state with an installed capacity of more than 6,310 Mw. Besides, the annual requirement of coal for sponge iron units alone excluding the CPPs is estimated to be at least 30 million tonne per annum. The coal requirement of these end use industries is only expected to increase in the coming years with their expansion and commencement of production by more units.
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