Anil Ambani-owned Reliance Power, along with Jharkhand Integrated Power Limited (JIPL), has roped in Germany based mining giant RWE Power International-RE GmbH for providing technical assistance and expertise in extracting coal from the mines allotted for the 4,000 MW Tilaiya ultra mega power project (UMPP) in Jharkhand.
The Coal Ministry has allocated Kerendari ‘B' and ‘C' coal blocks in North Karanpura coal fields in Jharkhand to meet the fuel requirements of Tilaiya power project. The aggregate coal reserves of these mines are estimated at around 1.23 billion tonnes and the mine plans envisage a production level of 40 million tonnes a year. The mines are expected to commence production in line with Tilaiya UMPP around 2015.
Under the terms of the memorandum of understanding (MoU), RWE will provide technical assistance relating to coal mine design and planning and engineering and procurement and commissioning of quality mining equipments for Kerendari BC coal mine. The MoU also provides for evaluation of geological data, assistance in the development of mine-related infrastructure, including maintenance facilities, assistance in identifying potential and implementing best practices in energy conservation, creation of quality control systems and standards, supervision of mine operations and implementation of international best mining practices at the mines.
Reliance Power, JIPL and RWE would endeavour to develop and implement the coal mining at Kerendari BC coal block in a competitive manner and introduce contemporary technological standards, a statement said.
The Tilaiya UMPP was allocated to Reliance Power under the provisions of a share purchase agreement on August, 7, 2009, after the company won the international competitive bidding (ICB) conducted for JIPL at a levelised tariff of Rs.1.77 per kWH. RWE Power is Germany's largest mine operator and power producer, generating electricity from coal, nuclear energy and gas with an installed generation capacity of 33,200 MW.