Union govt cancels coal block allocated to Himachal Pradesh

SHIMLA: In a major setback to the ambitious plan of the Himachal Pradesh government to draw power through a thermal plant outside the state, the Union coal ministry has cancelled allocation of a coal block to the state. The state government, which wanted to create an additional source of power for winter months when electricity generation from hydro-power generation dips, will lodge a protest after ascertaining the details.

Sources said the Union coal ministry, in its letter dated November 23, intimated Himachal EMTA Power Corporation Limited and JSW Steel Limited about cancellation of the coal block. In June 2010, the Himachal Pradesh government decided to get a joint venture company to set up a thermal power plant in West Bengal to meet escalated power demand in the winter. The state government authorized Himachal EMTA Power Limited (HEPL) to set up a coal pithead at Raniganj in West Bengal.

Himachal Pradesh chief secretary Sudripta Roy said they are aware of the decision but a detailed order is yet to come. "On Monday we will ask for the detailed order to examine the reasons given by the ministry. We will protest," he said.

The chief secretary said thermal power would have helped the state overcome power deficit in the winter when hydro power generation goes down. "Now the union government is taking the plea that Himachal Pradesh has decided not to have thermal power plants so why would they need the coal block," he said, adding that they would check if this was the basis for the cancellation of the coal block.

In the summer, Himachal Pradesh supplies power to other states under the banking system and draws the same in winter when power generation in the state dips. With the onset of winter, power crisis has already hit the state. The situation will worsen with snowfall in the upper reaches. Officials said they would deal with the situation by using banked power in Haryana from next month.

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Union govt cancels coal block allocated to Himachal Pradesh