| The move from India's largest private steel maker comes from its decision to commercially exploit the expertise in coal mining by offering the services to third parties. |
| "We have made an offer to NTPC indicating that we are interested in developing their captive coal blocks", the official said. |
| "It make sense for us to join hands as they need fuel and we have the expertise," he said. |
| A team of senior officials from Tata Steel have already held a round of discussions with NTPC officials recently in this connection. |
| However, the outcome of the talks could not be ascertained. |
| The official, however, clarified that Tata Steel is not inclined to pick up equity stake in the venture as of now. |
| The steel major is interested in taking on mining operations on a contractual basis. Under the terms of the offer, Tata Steel would develop and operate the captive mines. |
| Tata Steel has been operating iron and captive coal mines in the eastern belt for several decades. |
| State-owned National Thermal Power Corporation has recently bagged a maiden captive coal block in North Karanpura area of Bihar. The coal ministry has allotted the Pakri-Barwadih block to the power major, with geological reserves of 1400 million tonnes. |
| NTPC is likely to use the coal blocks to supply fuel to its plants in Barh and Kehalgaon in Bihar. |
| The power major has been repeatedly seeking captive coal mines to fuel its power stations and contain costs. |
| NTPC's need for securing its energy requirements has become acute in the past one year following the shortage of thermal coal in the country, besides the a major price hike in June. |
| Shares of NTPC ended at 75.05 rupees on the National Stock Exchange today, down 0.33% from Tuesday's close, while that of Tata Steel closed at 307.65, up 2.28 per cent. |
Top Section
Explore Business Standard