5 Yrs After Bagging Coal Block In Odisha, TN Company To Float Tender For Mining Operation

Representative photo

Bhubaneswar: Five years after bagging a coal block in Odisha, a Tamil Nadu company has decided to develop its non-forest areas.

The Centre had allocated the Chandrabila coal block in Talcher coalfield area in the state to Tamil Nadu Generation and Distribution Company (TANGEDCO) in 2016. But the state-owned company could not develop the coal block for lack of clearance from the Union Ministry of Environment.

The company had floated two tenders but there were no takers due to the low price. The bidders will be allowed to quote the price that suits them to develop the project, a news agency quoted TANGEDCO officials as saying.

This time, TANGEDCO plans to develop the areas of the coal block that do not have forest cover. The non-forest area of the Chandrabila coal mine is around 5 sq km out of the 9.32 sq km. The company will float a tender by February-end.

TANGEDCO will use the coal produced from mines in the block for its power projects like North Chennai Thermal Power Station and Ennore SEZ Power Station.

The Chandrabila coal block is spread over 9.32 square km with a total reserve of of 896.16 tonne. The Tamil Nadu company has been allowed to mine 10 million tonne per year for 35 years.