MAC: Mines and Communities

Commercial Coal Mining Still A Distant Dream For Ntpc

Published by MAC on 2006-05-12

Ash Tank Mishap Case

The Telegraph, Raipur, May 4: Korba police today registered a case against the National Thermal Power Corporation (NTPC) and a construction company in connection with the collapse of an ash tank yesterday.

The administration, however, denied reports that over two-dozen people went missing after slush from the tank spread to the adjoining areas. “The administration has received information of only one person missing. We cannot support the villagers’ claim unless we get some concrete information,” Korba superintendent of police Himanshu Gupta said.

A case has been lodged against the NTPC management and Bihar Construction, a company involved in the project, under Sections 337 and 269 of the Indian Penal Code, said Gupta.

Commercial Coal Mining Still a Distant Dream for NTPC


12th May 2006

NEW DELHI, MAY 11: State-owned power producer National Thermal Power Corporation’s (Ntpc) plans to start coal mining activity on a commercial basis may get delayed further. The power major has decided to use coal produced from all the seven blocks allocated to it for captive consumption to meet the growing requirement arising out of capacity additions.

The coal ministry had allocated seven coal blocks to the power utility earlier this year under government company dispensation to mine coal for captive as well as commercial use.

Ntpc sources said that though the company had earlier decided to use two out of seven blocks for commercial mining (to produce and sell coal in the open market), fresh assessment for captive requirements has prevented the plan from becoming operational.

The power utility is now planning to first begin mining from the existing blocks before presenting a fresh request to coal ministry to grant mines for commercial purpose.

Out of the seven coal blocks being allotted to Ntpc, three are located in North Karanpura, Jharkhand, one each in Singrauli (UP) and Raigarh in Chhattisgarh. For one of the blocks, Ntpc has already entered into a joint venture agreement with Coal India Limited (CIL) for mining activity. Sources however confirmed, the company may forge similar alliance with either a public or a private mining company for mining in other coal blocks.

“The annual production from these coal blocks is estimated to be 45 million tonnes. This could support generation of 10000 mw of power annually,” said an Ntpc official. According to sources, Ntpc is also learnt to have kicked off environmental impact studies for the captive coal blocks. Mine plan has also devised for one of the blocks.

Coal ministry sources said that Ntpc has been allocated coal blocks under government company dispensation where a PSU is permitted to mine coal previously reserved for Coal India Limited. At present, coal requirement of all the central power generating units is being met by Cil.

The government has decided to reserve a few of the Cil coal blocks to enhance production and bridge the demand-supply gap.

As per a study conducted by the Planning Commission, CIL would not be using many of the coal blocks reserved for it till the end of eleventh plan period. It is these blocks, the government now plans to deserve in favour of private and public sector companies for faster development of blocks.
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