Coal News We love to talk!

JUL 31 2015

Monnet to surrender Utkal C mine over power tariff cap

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 31st JUL 2015

Monnet Ispat & Energy Ltd (MIEL), which won a coal block in Odisha for about Rs 9,537 crore in the recent mines auction, is set to surrender it saying that the proposed changes in electricity tariff rules will render the project unviable. 

"We have submitted in the Court that we are ready to relinquish the block as the company was not told of the government's plan to cap the fixed component of power tariffs at the time of bids," Group's Marketing & Corporate Affairs President Amitabh S Mudgal told PTI. 

MIEL won Utkal C mine for power sector in March at an estimated Rs 9,537.22 crore, at bid price of Rs 770 per tonne. 

It has contested in the Delhi High Court the government's plans to cap the fixed component of power tariffs. The Centre recently auctioned 29 blocks in two phases to companies like Monnet, GMR Chhattisgarh, Hindalco, Reliance Cement among others. 

An estimated revenue of Rs 3.35 lakh crore would accrue to coal-bearing states from 29 auctioned and 38 alloted mines, as per the government. The auction followed the Supreme Court's cancellation of 204 coal blocks last year. 

Utkal C has an extractable reserve of 123.86 million tonnes (MT) and is housed in Talcher coalfield of Angul district of Odisha. JSW Energy earlier this month had entered into a non- binding pact with MIEL for possible acquisition of its power arm. 

"We have entered into a non-binding agreement with Monnet Ispat for due diligence for acquiring their power arm MPCL. Due diligence will take at least 40 to 45 days and based on the outcome the decision will be taken," Joint MD & CEO, JSW Energy, Sanjay Sagar had said. 

MIEL had earlier informed the BSE that it has signed non-binding MoU with JSW Energy for discussions to sell majority and controlling stake of its subsidiary, Monnet Power Company, which is developing 1,050 MW coal fired thermal power plant located in Odisha. 


Delhi Odisha JSW Steel Ltd. Monnet Ispat & Energy Ltd Coal Tariff Energy Memorandum Of Understanding Power Plant Coal Block Hindalco Power Electricity

Related News

  • Wind power producers oppose competitive bidding for projects  Read more
  • State power companies seek to import coal to tide over supply crisis  Read more
  • Coal India arm Western Coalfields Ltd slashes e-auction coal price by 20 percent  Read more
  • Tangedco buildings in districts to be powered by solar energy  Read more
  • Cops probing coal cases can go back to home cadres, CBI tells SC  Read more
  • Coal better than renewables for India: WCA CEO Benjamin Sporton  Read more
  • Tata Power arm buys wind farm in State  Read more
  • Power cuts in 12 districts under Jaipur electricity discom from yesterday  Read more
  • Scindia to meet Jaiswal to discuss coal issues  Read more
  • Kerala to focus on renewableenergy  Read more