NTPC's Gadarwara project in MP yet to get coal allocation

The Rs 11,640-cr project may get further delayed if coal is not made available

In what could delay National Thermal Power Corporation (NTPC)'s Rs 11640 crore Gadarwara project, the public sector power major is yet to receive coal, though other clearances have been obtained.

The project which was scheduled to be started by would get further delayed if coal is not made available. "It is not only NTPC Gadarwara but other thermal plats are awaiting Central government nod for coal allocation, this inordinate delay has delayed state's power generation program," a government source in state energy department said.

According to a company spokesperson, land acquisition process has been completed and the company will raise finances through domestic as well as extra commercial borrowing (ECB) route, while it has already obtained environment clearance for the project.

"NTPC has funds tied over a period of time from various sources which are used for various projects, all funds have been tied up for the project. It is going to be a mix of both domestic and foreign funding as per NTPC policy of funding," the spokesperson said.

The company is setting up the project at one of the most fertile area Gadarwara which is known for tur dal cultivation. Also the project would come up in close proximity of one of the least polluted river Narmada.

Once commissioned, NTPC would supply 50 percent of the total power generated from the 2 x 800 MW project. The company, according to sources in state department of energy and Bharat Heavy Electricals Limited (BHEL) has already placed orders for plant equipment to Bharat Heavy Electricals Ltd.

Initially, NTPC faced few hurdles in Gadarwara for acquisition of land but it would now come up near Sansarkheda village of Gadarwara tehsil.

The project demanded 1,350 acres of land of which state had allocated on 318 acres. The thermal power project would be first between Mahakaushal and Malwa region of the state.