The government today directed NTPC to commence production from five mines re-allocated to the state-run firm by the Coal Ministry expeditiously as these assets were earlier taken away over the PSU's failure to develop them.
"NTPC should speed up coal production from the coal blocks re-allocated to them by the Coal Ministry," Power Secretary P Uma Shankar said while addressing NTPC's O&M conference here.
"Some of NTPC's coal mines were de-allocated... now they have been re-allocated, they should do something to increase production from those blocks," Shankar said.
The Coal Ministry last year cancelled allocation of five blocks, namely Chatti Bariatu, Chatti Bariatu (S), Kerandari, Brahmani and Chichiro Patsimal, to NTPC as the power producer could not develop the mines within the stipulated timeframe.
However, the ministry reversed its decision following a request by the Power Ministry to review the order.
Shankar said, "They (NTPC) should put best financial resources to develop those mines, that should be an important strategy to ensure fuel security," he said.
He further stressed that every developer has to make its own efforts to develop coal blocks allotted to them.
Meanwhile, NTPC may soon commence work on its proposed 1980-MW thermal power plant at North Karanpura, in Jharkhand.
"We are told that the report on the North Karanpura project is with the Finance Minister and we are also told that the project will come up... We are ready for the project," NTPC CMD Arup Roy Choudhury told reporters here.
The proposed power plant of NTPC has been in the news over its relocation as it is planned in an area holding six billion tonnes of coal reserves.
While the Coal Ministry was arguing in favour of relocating the proposed plant, the Power Ministry was opposed to the move, following which the matter was referred to a ministerial panel last year.
The three-member panel headed by Planning Commission Member B K Chaturvedi also includes Coal Secretary Alok Perti and Power Secretary P Uma Shankar.
On being asked whether the panel has accepted NTPC's suggestion, Choudhury said, "What we understand is that the proposal that has gone for approval is based on our presentation... where we had mentioned that for the next 30-35 years, it is not possible to mine the coal which is more than 500 metres deep."
He is hopeful of starting work on the project as soon as the panel gives its go-ahead.
"Our land acquisition is over... The moment we get the clearance, we would start work," he added.
