Indian state-owned regional power generation company Mahagenco has received a mining lease for the Gare Pelma II coal block in the Raigarh district of Chhattisgarh (India), paving the way for land acquisition.
Extractable coal reserves have been revised downward from 1,059 Mt to 656 Mt. Coal production capacity is 50 Mt/year, enabling Mahagenco to meet its coal requirements for the next 30 years (average requirement of 46 Mt/year). The company had earlier been allotted the Machhakatta block in Odisha, but it was scrapped by the Supreme Court.
The coal block will supply Mahagenco's newly commissioned and future units, including two 500 MW units at the Chandrapur super thermal power plant, three 660 MW units at the Koradi power plant and one 250 MW at the Parli power plant. In addition, Mahagenco plans to develop a 4,000 MW mine-mouth coal-fired power plant, to reduce generation costs.
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