The Hindu Business Line : NTPC riders on captive mining — `Allow fresh bids to develop coal blocks'

NATIONAL Thermal Power Corporation (NTPC), responding to a suggestion by the Union Coal Secretary, has proposed that it would be keen to consider captive coal mining provided it is allowed to call for bids for the coal mining blocks already identified for development for its new power projects.

These mining blocks are currently earmarked for development by the subsidiaries of Coal India Ltd (CIL) for supply of coal to NTPC plants.

NTPC has recently submitted its proposal in writing to the Secretary, Coal, explaining that the proposal was in line with the recommendations of the committee constituted by the Planning Commission, commonly known as ``Chari Committee''.

It was pointed out that for the purpose of entering into captive mining, NTPC intends to follow the competitive bidding route for selection of mine developers on a build-own-operate (BOO) basis. However, considering the time required for completing the process of bidding and selection of mine developers/operators, the corporation feels it should be comforted by CIL and its subsidiaries for supply of coal as per requirements. Such an arrangement would be essential for any time-gap between the commissioning of the NTPC plants and the commencement of coal production from such captive mines, so that the power plant infrastructure is optimally utilised.

Informed sources reveal that the Coal Secretary suggested to NTPC early last month to undertake captive coal mining for its new projects, as the state-owned power major had doubts over timely completion of CIL projects. NTPC did, in fact, point out that since coal was a primary input for thermal plants, development of linked mines and associated coal loading infrastructure need to be expedited so as to ensure coal availability commensurate with the power projects' commissioning schedules.

NTPC also mentioned that it was given to understand that in the absence of a fuel supply agreement (FSA), investment decisions/developmental activities of the linked mining blocks may get delayed and, in turn, affect coal availability.

Considering this, the corporation has to find out alternatives to ensure smooth availability of coal for its new projects.

It is learnt that NTPC has commissioned two units of 500 MW each at Simhadri. At Talcher, construction activities for the 4 X 500 MW is under way at full swing. The generation from the first 500 MW unit at this station is likely to come on ``bar'' within the current fiscal. The construction work on 2 X 500 MW unit at Rihand and 1 X 500 MW at Ramagundam has also started.

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