NTPC 'locked out' of its captive coal blocks

NTPC may be owning eight "captive" coal blocks, but that does not mean that its access to the coal locked therein will be easy.

The power generation major has been facing delays in land acquisition for the blocks and in the rail linkages for coal evacuation, among other things.

In a presentation made to the Planning Commission, NTPC highlighted the problems it was facing with the blocks, most of which were acquired earlier this year.

For instance, there has been too long a delay in the issue of notification for acquisition of land under the Coal Bearing Areas (CBA) Act. "There is a need to simplify the notification process under the CBA Act and expedite it," a government official told Business Standard.

The allotment of the balance portion of Chatti-Bariatu and Kernadari coal mining blocks to NTPC is also a major issue, as the allotted blocks are surrounded by other blocks and therefore, technically impracticable to be developed in isolation.

The mining plan preparation for these blocks is also in limbo as the problem of delineation of NTPC's mine boundary and coal bed methane block boundary of ONGC and IOC is yet to be resolved.

NTPC has also expressed concerns on the tight schedule of the rail link between Benadag to Koderma via Hazaribag for coal evacuation from Pakri Barwadih, Chatti Baraitu and Kerandhari coal blocks. NTPC has said the December 2006 completion date needs "close monitoring."

NTPC plans to invest about Rs 10,000 crore for producing 50 million tonnes of coal annually by 2013. Coal is critical for the company as over 80 per cent of its installed capacity of 26,194 Mw is coal-dependent.