The Coal Ministry has said that NTPC should apply for new coal blocks instead of waiting to get back the three mines that were taken away.
A senior Coal Ministry official told Business Line that the Ministry would not take any step for the withdrawal of de-allocation letters to NTPC unless the Law Ministry gives its go-ahead.
“The question still remains whether it is permissible after amendments to the MMDR Act,” he said.
The issue of giving back coal blocks to NTPC has been discussed between the Prime Minister’s Office, Finance, Power and Coal Ministries.
The three blocks in Jharkhand -- Chatti Bariatu, Kerandari, and Chatti Bariatu (South) – were allocated to NTPC in 2006 and 2007, respectively.
The Coal Ministry had sought the Law Ministry’s view on the issue more than a month ago and is yet to receive any response, the official said.
Brahm Avtar Agrawal, Secretary at Department of Legal Affairs, was not available to comment on the issue. Agrawal is understood to have discussed the matter with Coal Secretary S.K. Srivastava on Thursday.
The Coal Ministry has invited applications from the Central and State public sector utilities to bid for 17 coal blocks, of which 14 are earmarked for power sector. The applications are to be submitted by January 30.
The Power Ministry is putting pressure on the Coal Ministry to re-allocate these three mines to NTPC before the company goes for share sale in February.
According to the Power Ministry, re-allocation of coal mines to NTPC would boost investors’ sentiment.
The Government aims to garner more than Rs 12,000 crore by selling 10 per cent stake in NTPC.
Divestment target
At present, the Government holds 84.50 per cent stake in NTPC. The success of NTPC share sale is important for the Government to meet its divestment target for 2012-13.
Till now, the Centre has garnered Rs 6,900 crore by divesting shares in public sector companies. A target of Rs 30,000 crore from disinvestment is set for this financial year.