NTPC plans coal mining firm

Power major also looking at managing power plants abroad

National Thermal Power Corporation Ltd (NTPC) is looking at floating a separate company that would own and undertake mining activities to meet its coal requirement.

The public sector power major is also looking at managing power plants located in foreign lands as well as provide consulting services in domestic and international markets.

"We require around 95 million tonne of coal a year, and with coal shortage affecting us, we would like to own mines which could ease the supply position for all our plants. We have requested the central government to allot us a few coal blocks," explained Chandan Roy, director, operations, at the IPO roadshow in Kolkata today.

"We expect that the government will allot us blocks in three to four months," he added. The power major has asked for reserves in Bihar, Jharkhand and West Bengal.

"At NTPC we would like to reduce dependability on coal supplied from Coal India Ltd to the extent possible and have decided to own coal mines," he added.

"A separate subsidiary for coal mining would however also depend on clauses provided by the central for owning these mines. If the government allows us to form a separate company we would go ahead with it, if otherwise, NTPC would be doing it," Roy said.

NTPC has also asked for coal mines from Coal India Ltd for captive consumption and has been allotted a mine in Orissa, while another is yet to be handed over. It intends to initiate mining activities as soon as both the blocks are handed over.

Sources close to the development said the mining activities being undertaken by NTPC on CIL's coal mines could also be transferred to the new company once it was formed.

About NTPC's consultancy services, he said, "We plan to expand our consultancy operations and seek to leverage our experience in the power sector to expand these operations both in India and abroad. We also believe that involvement in consultancy projects abroad will provide us exposure to international best practices in our country and in the new businesses we intend to enter."

At present, the company is involved in managing and operating power plants in Middle East. "We are also looking at opportunities in other countries and would take up stakes if required," Roy said.

"Subscribing to equity stake would depend on the laws of the land and the agreement we enter into with these foreign power companies," he added.