Govt cancels two more coal blocks of NTPC

The government has cancelled another two coal blocks allocated to power major NTPC for not developing them within the stipulated time frame.

The development follows the Coal Ministry cancelling three coal blocks -- Chhati Bariatu (South), Chatti Bariatu and Kerandari--  in Jharkhand which were allocated to the PSU.

"...The Ministry of Coal is of the view that allocatee company is not serious about development of coal blocks and has therefore decided to deallocate Brahmini and Chichro Patsimal coal blocks allocated to National Thermal Power Corporation (NTPC)," a notice posted on Coal Ministry website said.

Both the blocks -- Brahimini in Jharkhand and Chichro Patsimal in Orissa -- were allocated to the power major in 2006.

In 2009 an agreement was signed between NTPC and Coal India to form a joint venture company (JVC) to develop these mines in order to meet the coal requirement of Farakka and Kahalgaon expansion projects of the power firm.

The notice also said that although the joint venture agreement was signed in October, 2009, the "JVC has not yet been finalised".

The state run power major refused to comment on the development, saying that these blocks were to be developed by Coal India.

Last month, the Coal Ministry had said that it had decided to cancel allotment of 14 coal blocks, including five of NTPC.

To weed out non-serious players, the government, last year, issued notices to 84 coal and four lignite block allocatees for not developing the areas within stipulated time and sought explanation as to why blocks should not be cancelled.