Chief Minister Naveen Patnaik has green signaled for setting up of a 100 per cent subsidiary of Odisha Mining Corporation (OMC) for development of coal blocks. 

Mr.Patnaik favored this idea of the OMC Chairman Ashok Dalwai to undertake development of world class coal mining projects in state, parallel to cola projects of Mahanadi Coalfields Limited (MCL). 

Dr.Dalwai, known for his vision pointed out that by 2015-16 the requirement of coal in the state will touch 140 million ton per annum (MTPA). 

With the State Government signing MOUs with steel, power, alumina and other mega industries, coal requirement to jack up. 

Even if MCL increases its production it can cater around 40 MTPA to the industries of the state leaving a shortage of around 100 MTPA of coal. 

In order to meet the critical power requirement of the industries, this gap in the coal availability has to be bridged, felt he. 

OMC has undertaken a detailed study on the status of allocation of coal blocks and the requirement of coal for the state in future. 

OMC engaged PWC, Hydrabad and it has already identified a number of suiatable coal blocks for allotment in favor Odisha. 

Accordingly the Chief Minister has drawn the attention of the Prime Minister to the need for allocation of coal blocks with a reserve of 5000 million metric ton of coal, preferably contiguous locations in favor of Odisha PSU. 

Centre has been allotting coal blocks to the State Government companies and private companies with a view to bridge the gap between demand and supply of coal in the country. 

Odisha being the second largest coal bearing state of the country should have been given a substantial share in allocation of coal reserves, pointed out the Chief Minister in his letter to Dr.Man Mohan Singh. 

In contrast Odisha Government companies have been allotted with only 14.75 per cent of the total allotted coal reserve from Odisha, whereas other State Government companies has been allowed to exploit 47.09 per cent of coal reserve. 

OMC and OHPC has been allotted 500 million metric ton (MMT) of coal reserve, where as applications submitted was for 5000 MMT.

All other major coal-bearing states like Jharkhand, Chhatisgarh and West Bengal has been allotted reserves for commercial use to an extent of 19 per cent. 

Of the total allotted quantity for commercial use of coal in the country, where as Odisha has been allotted only 7.58 per cent. 

Keeping this in view Naveen Patnaik has demanded a major share in coal reserve and accordingly ground work has been done by OMC. 

So OMC has proposed that the new coal blocks identified for allotment will be developed by OMC Coal Limited. 

OMC has a kitty of Rs.3000 crore and can afford to incorporate a 100 per cent subsidiary, said the proposal. 

Taking this into account Chief Minister has cleared the creation of a separate subsidiary of OMC for development and commercial exploitation of coal, said an official.