SMC Power reiterates resumption of coal linkage

SMC Power Generation Limited reiterated its request to the Ministry of Coal for resumption of coal linkage for its 33 MW captive power plant.

It was seemingly arbitrarily stopped by the ministry soon after supplies under tapering linkage for its end-use sponge iron facility were started in June 2010.

SMC Power is one of the seven associate allottees of the New Patrapara coal block.

The private player is worried since the development of the New Patrapara, responsibility of the leader company, Bhushan Steel and Strips Limited  is now on hold. The company asserted that it can use the middlings generated in the process of washing coal from the Patrapara to generate power from its CPP only after the coal block is developed. Till that time, it is essential that coal linkage is maintained.

The New Patrapara block, located in the Angul district of Orissa, was jointly allocated to BSS, AML, DSPL, Adhunik Corporation Limited, Orissa Sponge Iron Limited, SMC Power Generation Limited, SML and Visa Steel Limited, subsequent to the government's introduction of the concept of joint mining rights, in 2005.