NTPC’s proposes project in Jharkhand has been stuck for more than a decade between the Power and Coal Ministries.

But soon, an NTPC team will start finalising the process for competitive bidding to procure equipment for its 1980 MW super-thermal power plant in Jharkhand.

The bids, worth nearly Rs 14,000 crore, should come by next fiscal (2013-14), Arup Roy Choudhury, Chairman and Managing Director, NTPC, told Business Line .

The Prime Minister Manmohan Singh-headed Cabinet Committee on Investment (CCI) on Wednesday shot down the Coal Ministry proposal to re-locate the project. The first unit of 3 x 660 MW, hanging fire since 1999, is expected to be commissioned in four years, once the contracts are awarded, Choudhury said.

Fuel linkage

Coal supply will be resumed and made available in the 13th Plan period, according to a Government statement on Wednesday. The Coal Ministry allowed fuel linkage in 2000 from the Magadh mines; this was later revoked in 2008.

The public sector power producer had obtained statutory clearances related to land, water, forest and environment prior to the Coal Ministry flagging issues to re-locate the project.

NTPC spent nearly Rs 250 crore on land acquisition, resettlement and rehabilitation (R&R), community development activities, construction of an ITI building, and approach and diversion roads, among others, the Chairman said.

The Coal Ministry had sought relocation of the 1980-MW super-thermal project, stating that the power plant was located just a few kilometres from the PSU miner’s coalfields in Karanpura, with nearly six billion tonnes of coal reserves.

Its mining operations would, it contended, eventually interfere with the smooth functioning of the power plant.

However, as per the present approved mining plans for coal blocks, mining activities are allowed to less than 150 metres depth, with mining life of around 25-30 years.

Panel view

Even if mining operations in these blocks are started immediately, and later extended beyond the present approved mining plan zone, it would take about 50-60 years for mining operations to reach a depth beyond 300 metres.

Earlier, a committee headed by Planning Commission member B.K. Chaturvedi Committee also said opencast mining operations may reach the proposed power plant’s boundary 50-60 years after start of operations. However, the economic life of a power plant is around 35 years.

siddhartha.s@thehindu.co.in