Jaiswal asks NTPC for fresh report on cancelled blocks

Considering NTPC's request to have a relook at the decision to cancel coal blocks, Coal Minister Sriprakash Jaiswal has asked the power major to come up with a fresh representation detailing steps taken to develop these blocks.

NTPC Chairman and Managing Director Arup Roy Choudhury had met Coal Minister Sriprakash Jaiswal yesterday and requested him to have a relook at the decision to cancel the allotment of five coal blocks to the company.

"NTPC chairman was asked by the coal minister yesterday to make a fresh representation of its five coal blocks which were recently deallocated by the ministry," a ministry official told PTI.

The minister has asked NTPC to provide details of steps taken to develop these blocks and investments entailed in the process, the official said.

Citing NTPC's failure to develop the fields as a reason, the coal ministry had cancelled NTPC's five coal blocks -- Chhati Bariatu (South), Chatti Bariatu, Kerandari, Brahmini and Chichro Pastimal -- in May.

Earlier this month, the power ministry had requested the coal ministry to review the decision, saying that NTPC's plans to add 15,000 Mw generation capacity were likely to be hit.

In a letter to the coal ministry, the power ministry had said that state-run power major has already spent Rs 175 crore for developing the blocks alloted to it and cancellation of these would prove detrimental for 12th Five-Year Plan (2012-17) capacity addition plans.

Jaiswal in turn had said the ministry might review its decision of cancellation of coal blocks allocated to NTPC, provided the reasons put forward by the power major for its failure to develop the blocks were "genuine".

Of the cancelled blocks, Chatti Bariatu and Kerandari coal blocks in North Karanpura coalfields in Jharkhand were allocated to NTPC in 2006 for captive use while Chatti Bariatu (South) coal block was given to public sector firm in 2007.

Brahimini and Chichro Patsimal coal blocks in Jharkhand 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.