The Centre has finally allocated tapering coal linkage to Bihar to expand Barauni Thermal Power Station under which a 2x250MW plant would be set up.

The allocation of coal linkage has come as a big relief to the state, as it was deprived of the much-needed linkage for coal supply to the plant.

“The Centre’s decision was conveyed to the energy department on Tuesday,” energy department secretary Sandeep Poundrik said.

Asked from which colliery the linkage had been granted to the plant, Poundrik said the Centre had not specified that. At present, Bihar has no thermal power generation, with Barauni thermal power station being the only state-owned plant.

Bharat Heavy Electricals Ltd is currently carrying out renovation and modernisation work at two units of 110MW each. The work is expected to be completed next year and the state would start getting 220MW power.

Besides, Bihar State Power (Holding) Company Ltd is planning to set up two new units of 250MW each on the thermal plant’s premises and the allocation of tapering coal linkage has paved the way for this expansion. Tapering coal linkage means that Barauni plant would continue to get coal supply till the block starts supplying to the plant. Once coal is supplied from Urma Pahari coalblock, the tapering coal linkage would be withdrawn.

The state has been demanding coal linkage for the Barauni plant, but the Centre, instead of allotting coal linkage, had allocated the Urma Pahari coalblock to both Bihar and Jharkhand in 2011, thus jeopardising the prospect of Barauni’s expansion. Urma Pahari Tola coalblock has coal reserves of 700 million tonnes out of which Bihar would get 263 million tonnes (37.5 per cent) and Jharkhand would get 437 million tonnes (62.5 per cent), but this would take time. The plant is crucial for the government as chief minister Nitish Kumar has promised to provide power to all by the end of 2015, failing which he would not seek votes from the people.