Lanco wins Gare Pelma II block, 3000 mw plant

Lanco Infratech has emerged the top bidder to develop a huge coal reserve and a mega power plant in Chhattisgarh on behalf of Mahatamil Collieries Ltd.

Sources with direct knowledge of the development said Lanco has outbid 34 others, including Tata Power, Reliance Power, Adani Power and L&T to win the contract.

Lanco officials were not available for comment.

The infrastructure major will set up a 3,000 mw power plant and run it using coal from a pit-head called Gare Pelma Sector II block.

The move finally paves the way towards utilisation of close to 768 million tonnes of coal reserves in Gare Pelma, which was allotted to Tamil Nadu and Maharashtra more than a decade ago.

“The main attraction is Gare Pelma. It has environmental clearance and does not fall into the recently announced ‘no-go’ areas by the ministry of enviroment and forests,” said a source.

And in spite of being in Chhattisgarh, the block and the adjoining area is not infested by Naxalite activities.   

According to the coal ministry website, the 25 square kilometre coal block located in the Mand Raigarh district of Chhattisgarh was jointly awarded to Maharashtra State Mining Corporation (MSMC) and the Tamil Nadu Electricity Board (TNEB) in 2006 with the specific end-use clause — to generate power.

In 2009, the two state departments formed Mahatamil Collieries Ltd with TNEB holding 74% and MSMC holding 26%.

In July 2010, Mahatamil invited tenders from qualified mine development operators to supply coal from Gare Pelma to Mahatamil and also build and run a power plant using the fuel.

Lanco will have the right to sell close to 40% of power at merchant rates, while the remaining will have to be supplied to the grid at a pre-determined rate.