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ALL INDIA INSTALLED CAPACITY

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Wednesday, September 15, 2010

MoC hauls up NTPC for delays at Pakri-Barwadih coal project

Adding to the worries of NTPC, which is already under tremendous pressure to arrange for fuel for its coal-based generating units, the Ministry of Coal (MoC) has now threatened to take back its Pakri-Barwadih captive coal block, for poor progress on all development activities. 
  • This dire warning was issued over a recent review meeting, after it revealed that the power firm has not been able to even select the mining developer-cum-operator (MDO) for the mining project. Besides, NTPC is yet to obtain the Stage-II forest clearance and complete the land acquisition process.
  • Though the block was originally expected to start operations by April 2008, NTPC seems to be in a position wherein it cannot even commit to a date for starting coal extraction.
  • In light of these facts, the MoC has, now, decided to issue a show-cause notice to NTPC to furnish suitable explanations for the undue delay in development of the coal block. Any failure in arguing its side convincingly will make the company liable to face revocation of the block allotment.
  • The Parki-Barwadih coal block, located in the Hazaribagh district of Jharkhand, was allocated for the exclusive use of NTPC's power plants. However, problems in the acquisition of forestry clearance, land diversion issues and lack of the requisite rail links for evacuation of coal have turned out as major impediments for the commissioning of this venture.

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