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Vedanta eyes link with CIL to develop coal block

business Updated: Sep 30, 2009 21:39 IST
Anupama Airy
Anupama Airy
Hindustan Times
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The Anil Agarwal-promoted Vedanta Group has proposed to use the public-private participation (PPP) model for developing new coal mines.

The company is seeking to partner the state-owned Coal India Ltd (CIL).

“Sterlite Energy Ltd (a Vedanta Group company) has expressed interest to work in a joint venture with Coal India Ltd (CIL) to develop coal plants,” the Planning Commission said in a letter to the ministry of coal, while forwarding the details of the proposal recently.

Sterlite Energy’s CEO, Pramod Suri, had written to Member (Energy) Planning Commission, B.K. Chaturvedi, on September 7 that Vedanta Group is facing coal supply shortage, and that linkages from CIL were not enough for its power plants going.

“We propose to participate in PPP mode with CIL and its subsidiaries for development of its new mines,” Suri had written in his letter to Chaturvedi.

Vedanta is seeking to up its power generation capacity from the present 2,100 mw to 6,000 mw by 2011-end.

It is executing a 2,400 mw power plant in Orissa for which Sterlite Energy has been allocated 112.22 million tonnes of coal from the Rampia coal block in Jharsuguda.

Sterlite has informed that while its own power plant is nearing completion, other partners of the Rampia coal block — Arcelor Mittal India Ltd, Reliance Energy Ltd, GMR Energy Ltd, Lanco Group and Navbharat Power — are showing no urgency to develop it.

As this could delay its power plant, Sterlite is seeking allocation of an independent coal block in the place of its share from the Rampia block.