NTPC to pump Rs 10,000 cr in coal production

NTPC Ltd plans to invest around Rs 10,000 crore for the production of 50 million tonnes of coal by 2013. The company will kick-start its coal production from the Pakhri Barwadih mine in Jharkhand by December 2007.

"For production of every 10 million tonnes of coal, it takes an investment of around Rs 2,000 crore. We are confident that we will achieve our production targets of 50 mt in the next seven years," a senior company executive told Business Standard.

The government has allocated seven captive coal blocks to NTPC for coal production. It has been allotted the coal blocks of Kerandari (228 mt), Chatti Bariatu (243 mt), Chattrasal (150 mt), Dulanga (260 mt), Talaipalli (965 mt), Brahmini (1,900 mt) and Chichro Patsimal (356 mt). The seven coal blocks have a combined capacity of 4,102 mt.

In another development, the power major will also sign the much-awaited memoranda of understanding with Singareni Collieries Company Ltd (SCCL) and Coal India Ltd (CIL) this month for coal mining and setting up power plants through joint ventures.

"The MoUs will be signed this month with the two coal majors for coal mining as well as for setting up power generation plants together," the executive added.

The power major's agreement with CIL is for the development of coal mining blocks at Brahmini (Jharkhand) and Palma (Orissa) which have an annual capacity of 10 mt each.

The agreement also involves setting up a 4,000-Mw power generation plant in Orissa through a 50:50 joint venture.

The agreement with SCCL involves putting together the two companies' expertise in power generation and mining to take up domestic and overseas projects.