Coal India subsidiary Mahanadi Coalfields and state government-owned Odisha Coal and Power Limited has signed a memorandum of understanding whereby the former would be sourcing around 6000 tonnes of coal per day from the captive block allocated to the latter. MCL in turn would sell the coal to its customers.
This first-of-its-kind move comes at a time when the government is looking to figure out the issues affecting coal production from captive sources despite undertaking both auction and allocation.
Manoharpur and the dip side of Manoharpur coal blocks with a production capacity of 8 million tonnes per annum were allocated to OCPL in August 2015 to supply coal to IB thermal power plant owned by Odisha Power Generation Corporation.