Allocated Rajasthan’s coal in Adani power plant

Raipur | Correspondent: Rajasthan Minister Hiralal Nagar has left Chhattisgarh amid controversy over his statements about Adani’s coal mine operations in Hasdeo Aranya.

Nagar has allegedly given false information to the media about the necessity and pricing of coal from these mines.

Rajasthan government has been allocated three mines in the Hasdeo Aranya region of Chhattisgarh namely Parsa East Kete Basan – I, II (PEKB), Parsa and Kete extension. These mines have been handed over to Adani under a Mine, Developer and Operator (MDO) agreement.

According to the agreement, coal extraction from the Parsa East Kete Basan (PEKB) first section(I) mine was supposed to be extracted up till the year 2028 followed by the excavation of the second(II) mine. However, Adani completed the excavation of coal from the first section of mine by the year 2022.

Despite this, not all the extracted coal was supplied to Rajasthan.

Instead Adani has been using the rejected coal from this mine to fuel its power plant, contrary to the terms of the agreement.

Adani group using coal allotted for Rajasthan for its own Power plant

The Adani group has been using the coals allotted for the Rajasthan to fuel its own power plants. In just one year, the group has sent three million tonnes of coals from the Rajasthan-alloted mines to its power plant and other industries.

In 2021 alone, the Adani group transported 49,229 wagons of coal from these mines, with 39,345 wagons going directly to its own power plant. This arrangement is part of an agreement with the Rajasthan government.

Currently, the Adani Group is already working on the PEKB Phase-।।. This phase will involve cutting down at least 222,921 trees from the dense forest of Hasdeo, a number based on older data and likely higher now due to natural growth.

Meanwhile, local Adivasis are opposing the Parsa and Kete Extension mines, claiming that the approvals for these mines were obtained illegally.

Rajasthan Energy Minister’s Statements on Coal Needs

Rajasthan’s energy minister Hiralal Nagar recently informed media that Rajasthan’s 4,350 megawatt power plant is completely dependent on Chhattisgarh’s allocated coal, if the excavation from the two other blocks is not started, Rajasthan would have to purchase the coal in higher amount from the Coal India.

However, Nagar’s claims have been disputed.

On July 16, 2023, the Chhattisgarh government submitted an affidavit to the Supreme Court stating that the Parsa East Kete Basan mine, where excavation is ongoing, still has 350 million tonnes of coal left to be mined.

According to the affidavit, this mine alone can meet Rajasthan’s 4,340 MW power requirements for the next 20 years.

This contradicts Minister Nagar’s assertion that new mines are necessary. Additionally, the cost of coal is an arguable issue.

The Rajasthan government pays the Adani Group Rs 3,914.57 per tonne for coal from its own mine, while Coal India has been supplying coal of the same grade to Rajasthan’s power plants at a lower rate of Rs 3405.19 per tonne.

This difference further questions the minister’s claims about the need and cost of coal.