Shimla: Public sector power generating company, SJVN Limited has been allocated a coal block in West Bengal for its upcoming 1320 MW Buxar thermal power project in Bihar.
Ministry of coal, late on Thursday allocated the coal block after due recommendations from a Inter Ministerial Committee (IMC). Besides SJVN, six other central PSUs were allocated the coal blocks by the ministry.
The Deocha-Pachami coal block in West Bengal to be shared by six state power PSUs along with SJVN has a reserve of 2102 MT.
SJVN which operates the country’s largest hydropower plant is venturing into thermal generation for the first time. In January, 2013 the public sector undertaking signed an agreement with the Bihar government for setting up a 1320 MW plant in Chausa, Bihar.
The propose plant is expected to generate 9090 million units of electricity at 85 % plant load factor in a year. The cash rich PSU is expected to invest Rs 6891 Cr to construct the thermal plant that would need 6.25 MT of coal annually to operate at capacity.
The publically listed company is scheduled to commission the 412 MW Rampur hydropower plant and 47.6 MW Khirvire wind power project during the current financial year.