The Hindu Business Line : NTPC likely to get seven coal blocks

NTPC's foray into coal-mining is aimed at ensuring timely availability of fuel for its stations and at controlling the fuel cost, which constitutes around 50 per cent of its bulk supply tariffs.

New Delhi , Dec. 20

THE State-owned NTPC Ltd on Tuesday said its coal-mining venture is likely to win rights to seven blocks.

The mines have a total capacity of 4,102 tonnes, NTPC said in a statement to the BSE. The company is awaiting a formal approval from the Government, the statement said.

NTPC, which uses coal to operate 13 of its 20 plants, has been facing a coal shortage over the last four months. The company, which is planning to double its power generation capacity to 46,000 MW by 2012 and to 66,000 MW by 2017, now utilises about a quarter of the 80-million tonnes of coal produced in the country each year.

According to Government officials, the company is slated to commence production of coal for firing its plants by 2007 from the one coal-mining block — the Pakri Barwadih block in the North Karanpura coalfields in Bihar — that it has been awarded so far. The power major's foray into coal-mining is aimed at ensuring timely availability of fuel for its stations and at controlling the fuel cost, which constitutes around 50 per cent of its bulk supply tariffs.

NTPC also feels that it can sharply reduce the cost of extraction of coal by using global practices, company officials said.

Of the 13 coal-fired stations being operated by the utility at present, nine are located at the `pit heads' of coal blocks. Of these, seven are located within 25 km of the coal mine and these stations are serviced by dedicated railway lines, thereby ensuring greater security of fuel supply.

The NTPC stock, which opened the day at Rs 106 per share on the BSE, ended higher at Rs 110.65 per share.

The 52-week high for the share stood at Rs 111.70 per share, while the 52-week low for the stock was at Rs 77.40 per share.

More Stories on : Power | Diversification | Coal

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