Leading to fuel availability for a project.
As per a stock exchange filing by JSW Energy (JSWE), its lignite mining JV– Barmer Lignite Mining Company (BLMCL)–has received environment clearance (EC) from the Ministry of Environment and Forests (MoEF), Government of India (GOI) to increase the mining capacity of its Kapurdi lignite mines from 3.75mtpa to 7mtpa for a period of four years.
According to a research note from Nomura, to put the event in context, BLMCL is 51:49 mining JV between Rajasthan State Mines and Minerals (RSMML) and RajWest Power (RWPL)–JSWE’s wholly owned subsidiary which houses the 1040MW lignite-fired project at Barmer, Rajasthan.
The Kapurdi mine currently provides the feedstock (lignite) for the Barmer project. Further, entire electricity generated from the project is sold to the Rajasthan Discoms on regulated return tariffs.
Here's more from Nomura:
Total mineable lignite reserves at Kapurdi are 129.79mt.
Although the EC for expansion of mining capacity at Kapurdi mine to 7mtpa (from 3.75mtpa currently) is on expected lines, the timeline is comforting as the green nod ensures fuel availability for the Barmer project; at 3.75mtpa mining cap and the 1040MW capacity operating at ~80% utilization level, lignite availability would have been exhausted in 4QCY14.
The focus would possibly shift to implications (if any) of the final verdict of the Supreme Court on the coal block allocations between 1993-2010, which is expected to be announced tomorrow afternoon.
BLMCL’s Kapurdi mine is included in the list of 15 producing lignite blocks issued by the Ministry of Coal on September 3, 2014 in relation to the ongoing court case.
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