Steel Authority of India (SAIL) has asked government to allocate two-three coal blocks identified by it in various states in order to meet the increase in the fuel requirement on the back of capacity expansion.
The state-run steel maker is expanding its total steel making capacity to 24 million tonne per annum (mn tpa), from 14 mn tpa. The expanded capacity would require around 1,800 mw of power and 12 mn tpa of coal.
SAIL has sought allocation of at least two-three of the six coal blocks identified by it -three in Odisha, two in Chhattisgarh and one in Uttar Pradesh.
The steel maker wants the government to allot it under the dispensation route for meeting fuel requirements of its captive power plants.
The company is learnt to be looking for gas allocation to set up a gas-based 1,050 mw power plant at Jagdishpur in Uttar Pradesh, though no commitment has been made yet by the oil ministry.
The company meets about 70 per cent of its power requirements from captive power plants. For this, the company requires about 7 million tonnes of thermal coal and purchases almost entire quantity from Coal India.
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