Coal India shocker: NTPC to relocate plant in Jharkhand

State-run Coal India Ltd (CIL) has successfully persuaded the country’s largest power generator, NTPC, to relocate its North Karanpura Super Thermal project in Jharkhand on the ground that it would block about 6 billion tonnes of coal, if established.

The state-run power generator will relocate the 1,980-mw plant to one of the five alternative locations provided by CIL. The decision on relocation was taken at an inter-ministerial meeting held on February 11.

NTPC and CIL will also form a joint venture to extract coal from the erstwhile site of the power plant. This will be their second JV, subsequent to their maiden agreement to develop the Brahmani coal block in Jharkhand.

The decision to relocate the power project could set a precedent for other projects that are proposed to be set up in coal- bearing areas. In West Bengal alone, three steel projects, including Bhushan Steel’s Rs 49,000-crore project, are expected to come up in the coal-rich Asansol-Ranigunj belt in Bardhaman.

Subsequent to this decision, it is also understood that steel plants, proposed to come up in the coal bearing areas of Ranigunj, will not be allowed to be established by CIL, as they will block large coal reserves.

Steel companies argued that proposed facilities were being set-up on coal-bearing areas and not on the licensed command area of CIL. However, NTPC’s North Karanpura venture is outside CIL subsidiary Central Coalfield’s command area. The West Bengal government and the steel companies had also pointed out that the depth of the reserves would not make it viable for mining.