NTPC stresses on govt's responsibility for coal supply

NTPC on Monday stressed that even though the coal ministry had de-allocated blocks, it was the government’s responsibility to supply coal.

Speaking on the sidelines of a seminar organised by the Bengal National Chamber of Commerce and Industry (BNCCI), NTPC chairman and managing director Arup Roychowdhury said the company would not exceed imports beyond 10% of its total requirement, though it was looking for overseas coal blocks. NTPC would make offers for picking up stake in Bandana Energy on July 29. Bandana has 16 exploration blocks in Queensland, a coal rich area of Australia. But Roychowdhury did not want to say how much stake NTPC would pick up in the company or what amount of coal it was looking to get from it.

He said, “As a power producer, NTPC has proven credentials. So the government has to give us fuel either through linkage or through allocation of coal blocks. Even if the government has de-allocated five coal blocks, we will depend on it for the fuel,” Roychowdhury said.

NTPC was given five coal blocks—Chhati Bariatu (South), Chhati Bariatu and Kendari in Jharkhand and Brahmani and Chichiro in Orissa, of which the blocks in Orissa were supposed to be jointly developed by CIL and NTPC.

The five blocks together have a reserve of 3 billion tonne, of which the blocks in Jharkhand, allocated in 2006, had a reserve of 836 million tonne. The rest 2.264 billion tonne of reserves are in the blocks at Orissa.

Roychowdhury said he would hold talks with CIL chairman NC Jha on Monday regarding developing the blocks hinting that there may be a rethink on the de-allocation, though he did not want to divulge details.

In fact, Prime Minister Manmohan Singh, after learning about the de-allocation notice, said that if NTPC could give valid reasons about why it couldn’t develop the blocks, then the blocks would be reallocated to it.

Roychowdhury stressed that on matters relating to capacity addition, it would mainly depend on domestic coal and not increase its import ceiling over 10% of its total requirement.

NTPC currently generates 35,000 mw and has plans to add another 35,000 mw to emerge as a 70,000 mw generating company by 2017.