Public sector power major, NTPC, has been asked to begin production from five mines re-allocated to it by the Coal Ministry. The blocks had earlier been taken away after the company failed to develop them.
This was stated by the Power Secretary, Mr P. Uma Shankar, at an Operation & Maintenance conference, organised by NTPC here on Monday.
“Some of NTPC's coal mines were de-allocated... now they have been re-allocated, they should do something to increase production from those blocks,” Mr Shankar said.
Last year, the Coal Ministry had cancelled allocation of five blocks - Chatti Bariatu, Chatti Bariatu (S), Kerandari, Brahmani and Chichiro Patsimal - to NTPC as it could not develop the mines within the stipulated timeframe.
Improve fuel security
In his address to the conference, the Union Minister of State for Power, Mr K.C. Venugopal, said the country should seriously focus on improving availability of domestic coal by developing more mines and had to find ways to improve fuel security.
He asked NTPC to work hard for early start of production of coal from its captive mines to help bridge the gap between requirement and availability as also lower the cost of power generation.
Pricing of coal
Mr Venugopal said availability and pricing of coal were two crucial issues confronting the power sector.
He said initiatives had already been taken for execution of fuel supply agreements for plants commissioned beyond March 2009.
Meanwhile, sources said NTPC may soon begin work on its proposed 1,980 megawatt thermal power plant at North Karanpura, in Jharkhand.
“We are told that the report on the North Karanpura project is with the Finance Minister and we are also told that the project will come up... We are ready for the project,” the NTPC Chairman and Managing Ditrector, Mr Arup Roy Choudhury, told reporters.
The proposed plant has been in the news over its relocation, as it is planned in an area holding six billion tonnes of coal reserves.
While the Coal Ministry was arguing in favour of relocating the proposed plant, the Power Ministry was opposed to the move, following which the matter was referred to a Ministerial panel last year.
Mr Choudhury said he was hopeful of starting work on the project as soon as the panel gave its go-ahead. “Our land acquisition is over... The moment we get the clearance, we would start work,” he added.