3 coal blocks to be re-allocated to NTPC: Scindia

Power Minister Jyotiraditya Scindia today said that three forfeited coal blocks of NTPC would be re-allocated to the state-owned company tomorrow as the approval is expected by the Law Ministry's by then.

The three coal blocks likely to be re-allocated to NTPC are Chatti-Bariatu, Kerandari and Chatti-Bariatu (South). "The three coal blocks of NTPC would be re-allocated to the company by tomorrow after Law Ministry's approval, which is expected by today or tomorrow," he said.

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The blocks were taken back from NTPC by the Coal Ministry because of long delays in developing them. Meanwhile, Coal Minister Shriprakash Jaiswal said on the re-allocation of coal blocks to NTPC: "The matter is being looked into and would be resolved soon."

The two ministers gave comments to the media after their meeting with Finance Minister P Chidambaram on the issue of re-allocation of coal blocks to NTPC. The government plans to sell stake in the country's largest power producer within this fiscal ending March 31. It proposes to divest 9.5 percent stake in NTPC via Offer for Sale (auction) route, which could reap over Rs 12,000 crore for the exchequer.

The government has proposed to raise Rs 30,000 crore by way of disinvestment in 2012-13. It has been able to realise just over Rs 6,900 crore so far. Disinvestment of Oil India and NTPC is lined up for January and February.

The government holds 84.5 percent stake in the NTPC. Post-disinvestment, its stake would come down to 75 percent. Re-allocation of the coal blocks would boost the overall market valuation of NTPC, which is grappling with fuel shortages. Better share prices, during disinvestment, would in turn help in fetching higher returns for the government, which is hard-pressed for resources.