RPower seeks to double coal output at Tilaiya block

Reliance Power Ltd. | Power Generation/Distribution | Power | BSE: 532939 | NSE: RPOWER

27 Jan 2012 Evaluate

Reliance Power is looking to double coal production from 20 million tonnes (mt) to 40 mt a year at the captive blocks allocated to its 3,960-MW Tilaiya ultra mega power project in Jharkhand. For this, RPower has inked an agreement with RWE Power of Germany to acquire technical assistance for mining of the Kerendari ‘B' and ‘C' coal blocks in North Karanpura coal fields, allocated to the plant to meet its fuel requirement. RWE Power is Germany's largest mine operator and power producer with installed generation of 33,200 MW. Production from its three mines comes to 100 mt a year. RWE offers consultancy services in power and mining sector and has clientele in 68 countries. The mining plan has been submitted to the Government and approval had been obtained.

The overall cost would go up but production would almost double, which was a major advantage in the current scenario where both coal availability and price were a concern. The Tilaiya project's coal block reserves are estimated at 1.2 billion tonnes and the mining plan looks forward to produce 40 million tonnes annually. RPower is working to ensure the coal production sychronises with the power generation of the plant. The mining cost is expected at Rs 7,000 crore. Tilaiya project is slated to begin generation in 2015. Reliance Power was awarded the project as it bid Rs 1.77 a kwh.