In a major setback to India’s largest power generator and Maharatna NTPC Limited the Union government announced it would cancel allocations of 5 of the 8 blocks awarded to the company over the past seven years.
The five blocks Chatti Bariatu, Chatti Bariatu South, Kerandari, Brahmani and Chichiro Patsimal have combined geological reserves of 3 billion tonnes.
The decision is based on the recommendations of a review committee headed by the special secretary in the ministry of coal, Alok Perti, could hurt NTPC’s long term fuel securing plans experts believe. The power producer currently requires around 150 million tonnes of coal to operate 36,000 Mw capacities annually.
The company plans to meet around 20% of its coal requirement of 250 MT in 2017 through captive production.
The coal ministry had last year initiated a massive review of the development status of 203 captive coal blocks allotted to companies since 2003 as only 23 of these blocks have been able to commence production so far. The ministry had later issued show cause notices to 84 captive coal block holders including the world’s largest steel maker ArcelorMittal, Tata Steel, Jindal Steel and Power and NTPC Limited.
The eight coal mines allotted to NTPC so far by the coal ministry possess reserves of around 5 billion tonnes .All these were expected to come into production between April 2008 and March 2012. However not a single block has commenced production so far even while the power generator has set for itself a target of ramping up coal production from its captive mines to 47 MTPA by 2017.
Apart from NTPC the ministry has decided to cancel the licences for blocks awarded to Damodar Valley Corporation, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam Limited and the Electricity Boards of Bihar and Jharkhand among others for non -adherence to norms, the official said. The private companies facing deallocationof blocks are VS Lignite and Baidyanath Ayurved Bhawan. (sourced from BS)
The five blocks Chatti Bariatu, Chatti Bariatu South, Kerandari, Brahmani and Chichiro Patsimal have combined geological reserves of 3 billion tonnes.
The decision is based on the recommendations of a review committee headed by the special secretary in the ministry of coal, Alok Perti, could hurt NTPC’s long term fuel securing plans experts believe. The power producer currently requires around 150 million tonnes of coal to operate 36,000 Mw capacities annually.
The company plans to meet around 20% of its coal requirement of 250 MT in 2017 through captive production.
The coal ministry had last year initiated a massive review of the development status of 203 captive coal blocks allotted to companies since 2003 as only 23 of these blocks have been able to commence production so far. The ministry had later issued show cause notices to 84 captive coal block holders including the world’s largest steel maker ArcelorMittal, Tata Steel, Jindal Steel and Power and NTPC Limited.
The eight coal mines allotted to NTPC so far by the coal ministry possess reserves of around 5 billion tonnes .All these were expected to come into production between April 2008 and March 2012. However not a single block has commenced production so far even while the power generator has set for itself a target of ramping up coal production from its captive mines to 47 MTPA by 2017.
Apart from NTPC the ministry has decided to cancel the licences for blocks awarded to Damodar Valley Corporation, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam Limited and the Electricity Boards of Bihar and Jharkhand among others for non -adherence to norms, the official said. The private companies facing deallocationof blocks are VS Lignite and Baidyanath Ayurved Bhawan. (sourced from BS)
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