NTPC wakes up to coal block cancellation

The state owned PSU NTPC has swung into action post cancellation of captive coal blocks by the Coal Ministry due to inaction on such coal blocks.To weed out non-serious players, the government, last year, issued notices to 84 coal and four lignite block allocates for not developing the areas within stipulated time and sought explanation as to why blocks should not be cancelled. Last month, the coal ministry de-allocated 15 coal and lignite blocks allotted to various firms.

Expressing concern that NTPC’s plans of adding over 15,000 Mw generation capacity are likely to get hit due to de-allocation of coal blocks, the Power Ministry has asked the Coal Ministry for an “urgent review” of the decision. In a letter to the Coal Ministry, the Power Ministry said that at a crucial juncture when the state-run power major has already spent Rs 175 crore for developing three blocks alloted to it, Coal Ministry’s move of de-allocation would prove detrimental for 12th Five-Year Plan (2012-17) capacity addition plans.

“Some of NTPC’s projects of … 15,060 Mw coming up during 12th Plan are yet to be accorded coal linkages… Barh stage II and Tanda expansion power projects scheduled to come up during FY13 and FY16 are linked to Chhatti-Bariatu and Kerandari coal blocks,” the Power Ministry said.

The Coal Ministry, on May 5, had cancelled allocation of five coal blocks, including Chatti-Bariatu, Kerandari and Chatti-Bariatu (South), to NTPC. De-allocation of the blocks at a crucial stage means delays in NTPC plans and lesser availability of coal during the beginning of the next Five-Year Plan, the ministry said.

“An urgent review of the decision of de-allocation of Chatti-Bariatu, Kerandari and Chatti-Bariatu (South)” coal blocks is required to ensure that power generation plans during the 12th Plan do not get de-railed, it said. Stating that “delays in achieving milestones towards implementation of the project were due to several factors beyond the control of NTPC,” the Ministry said delays in environment and forestry clearances had proved road blocks.

It takes about two-three years to achieve environmental and forestry clearances. The construction at the site can commence only after receiving green clearances from the Ministry of Environment and Forest, it said. It added that NTPC made substantial progress in development of Chatti-Bariatu and Kerandari blocks.

“While stage-1 forestry clearance has been accorded to the Chatti-Bariatu coal block, this is under consideration for the Kerandari block. NTPC has spent about Rs 137.83 crore for disbursement of land compensation … And other activities for these two blocks,” the letter mentioned. NTPC, could not be reached out for comments.