Bhubaneswar, June 23: Uncertainty looms over state government’s plan to expand the capacity of the thermal plant of the Orissa Power Generation Corporation (OPGC) at IB valley in Jharsuguda district. The state has not received the required coal block from the central government.

“Without the allotment of coal block, it will not be possible to go ahead with the expansion of the thermal plant,” said a senior official of OPGC. The state aims to generate nearly 1330 MW (660x2) from these two units. OPGC aims to invest nearly Rs 10,000 crore for this mega project. At present, two thermal plants of 220 MW each are operating.

OPGC was formed in November 14, 1984, and started as a wholly owned government company with the objective of establishing, operating and maintaining large thermal power generating stations. In 1999, as part of the reform in the energy sector, the company had divested 49 per cent of its share in favour of a private investor, the USA-based AES Corporation.

The ministry of coal had earlier allocated a coal block in an area covering 2,000 acres at Manhorpur in Sundergarh district to facilitate the expansion work of the OPGC thermal project. The foundation stone for the two units had already been laid and international bidding was also called for the project. Later, the ministry of forests and environment (MoEF) had objected the sanction and had stated that the allocated area came under “No Go” zone category.

The issue was discussed at a meeting chaired by Orissa chief minister Naveen Patnaik today. Energy secretary G. Mathivathanan said: “We will expedite the process to get the coal block for OPGC. The government is writing a letter to the ministry of power, ministry of forests and environment and the ministry of coal on this and urged the Centre to allow mining of coal in the proposed areas. The area should be reconverted to “Go Zone area”.

The MoEF is reported to be of the view that three major players — NTPC, ministry of power and OPGC — have applied for coal blocks. Both the National Thermal Power Corporation (NTPC) and the ministry of power have planned to set up mega thermal power units. The MoEF has said it would give nod to one of the three contenders. It would not be possible for all three parties to explore coal in the area.

“The MoEF should take a final decision on the issue immediately so that OPGC can arrange for another linkage for itself,” said an official.

Now, OPGC has two units of 210 MW each in the IB valley area. These units have become operational since 1994 (1st Unit) and 1996 (2nd Unit), respectively. The entire generation from these units are committed to Gridco — the state-owned Power Transmission and Trading Company — on the basis of a long-term power purchase agreement.