NTPC to appoint developer for Jharkhand coal mine soon

Image
Press Trust of India New Delhi
Last Updated : Aug 03 2015 | 8:42 PM IST
State-owned power producer NTPC will soon appoint a mine developer and operator (MDO) for its Pakri-Barwadih coal block in Jharkhand.
"MDO (for Pakri-Barwadih coal block) very close to be appointed," NTPC said in an investor presentation 2015.
NTPC has earlier cancelled Rs 23,000-crore contract with Thiess Minecs India to develop this block due to delays.
The company further said that it is also in the process of appointing MDO for developing Kerandari coal block in Jharkhand.
Earlier, NTPC had informed the Coal Ministry that it was pursuing the case with the Jharkhand government and the block was expected to start production from December, last year.
Mining plan, environment clearance and forest clearance pertaining to the mine have been obtained, the company had earlier informed the government.
"Reasons for non-commencement of coal production despite all clearances can be attributed to lack of support of government of Jharkhand," it had said.
Thiess Minecs was appointed mine developer and operator for NTPC's Pakri-Barwadih mine in November, 2010, after a global tender. The company wanted to start mining coal to reduce dependence on the market for the fuel.
The contract, valued at an estimated Rs 23,000 crore, was for a period of 27 years, the company had said, adding that the development period was 360 days ending November 25, 2011, with the remainder for operations.
Thiess Minecs is a 90 per cent subsidiary of Thiess Pty Ltd, Australia, which is a mining, construction and services contractor.
NTPC had issued a show-cause notice to Thiess Minecs on July 10, 2012, stating the defaults and non-fulfilment of contractual obligations by the company without any response.
The power PSU had also said the matter was not taken very seriously by the Australian authorities.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Aug 03 2015 | 8:42 PM IST

Next Story