The Delhi government-owned Indraprastha Power Generation Co Ltd (IPGCL) will set up a 2,000 mw coal fired power station in Mara-II Mahan coal block in MP.

Centre has allotted Mara-Mahan coal block jointly to Delhi and Haryana governments. However, soon after the allotment IPGCL was in a fix as it was already in a mode to phase out all its coal plants in Delhi and did not need coal for power generation.

Considered to be a major source of air and river pollution because of high quantity of fly ash released, IPGCL will phase out the 247 mw Indraprastha power station and the 135 mw Rajghat power station by 2010.

Sources said the Gujarat Mineral Development Corporation (GMDC) is now carrying out detailed exploration, geological report preparation, and environmental impact assessment study after IPGCL decided to set up a power station at the coalfields and then transmit the power to Delhi.

??The estimated coal reserve shows that IPGCL can produce 2,000 mw of power for the next 25 years,?? sources said.

Some studies have already been carried out and details show that 25% of the coal seam is near the surface while the remaining 75 % is underground. The projected power production of 2,000 mw for 25 years is on the mining of the 25% coal near the surface and can increase substantially if IPGCL is able to carry out underground mining.

IPGCL wants to initially focus on the 25% coal as it does not have the necessary expertise to operate an underground mine. However, it is now actively looking at forming a partnership with public sector undertaking or private players to tap into the huge reserves underground.

??Several private players like IL&FS has approached IPGCL to jointly undertake mining activities, but a call can only be taken when GMDC prepare its final report which should be tabled on next month,?? sources said.

About three years time is expected to be taken for infrastructure works to be completed for the mining and another four years for power plant. The power will be equally shared by Haryana and Delhi.