Perform well or return coal blocks, govt tells NTPC

The government today warned two firms including National Thermal Power Corporation (NTPC) for delays in developing their coal blocks, saying that they would be taken back if no immediate action is taken by the companies to rectify the situation.

Power major NTPC was warned for two coal blocks each in Jharkhand and Chhattisgarh, and Utkal Coal for its block in Orissa.

"The allocatee[s] are hereby warned and further directed to take immediate action to develop the coal block[s] as per milestones fixed for different activities. In case of failure to achieve milestones...Action will be initiated as per the terms and conditions of allocation including de-allocation of the coal block[s]," the Coal Ministry said.

The estimated production capacity of NTPC's Pakri-Barwadih block in North Karanpura coal field in Jharkhand is 15 million tonne. In the Talaipalli block in Mand-Raigarh coal field, Chhattisgarh, it is 18 million tonne.

Pakri-Barwadih was alloted to the state-owned firm in 2004 and the production from this block was scheduled to start from 2008-09. Tallaipalli block was allocated to NTPC to feed its 4,000 MW power projects which has to start production by March-end next year, according to the coal ministry.

Meanwhile, Utkal-C block was allocated to Utkal Coal in 1998 for supply of coal for its three captive power plants.

Last week, the ministry had written to Gondwana Ispat and Andhra Pradesh Development Corp warning that coal blocks allocated to them would be cancelled if they failed to develop them in time.

The government had last month said that the panel set up by the ministry to look into the process of deallocation of coal blocks had recommended issuing warnings to 29 coal and three lignite blocks allocatees.

The panel had also suggested cancellation of 14 coal blocks and one lignite block to six PSUs, including NTPC and three private firms for failing to develop the mines.

This year, the government has deallocated coal blocks of various firms, including NTPC, Damodar Valley Corporation, Jharkhand State Electricity Board, Baidyanath Ayurved Bhavan, Andhra Pradesh Power Generation Corporation, and Bhatia International.