NTPC eyes to mine 100 MT coal by FY20 from new blocks
Having bagged four coal blocks from the government last month, state-run power major NTPC today said it expects to produce nearly 100 million tonne coal over the next 5 to 6 years.
August 02, 2013 / 12:01 IST
Having bagged four coal blocks from the government last month, state-run power major NTPC today said it expects to produce nearly 100 million tonne coal over the next 5 to 6 years.
Also read: Coalmin to look into issue of missing files sought by CBI "There is huge pressure on demand for coal. At the same time Coal India is struggling to increase production. We have our captive coal mines and we expect to produce nearly 100 million tonne over the next 5-6 years to meet our fuel demand," NTPC Chairman and Managing Director Arup Roy Choudhury said at a post-earnings press interaction here.The company is working on coal blocks in the Pakri Barwadih, Chatti-Bariatu, Kerandari and Chatti-Bariatu (South) coal blocks in Jharkhand; the Tallaipali mines in Andhra Pradesh and Dulanga mines in Odisha with total geological reserves of 3,732 MT and mineable reserves of 2,035 MT."We plan to mine around 33 mt per annum by 2017 from these blocks," he said. The Coal Ministry last month allocated four additional coal blocks to NTPC - Banai and Bhalumunda in Chhattisgarh and Chandrabila and Kudanali-Laburiw in Odisha. These blocks have an estimated geological reserves of 1,995 MT and production protential of 42.5 MT."In a major backward integration move to create fuel security, we have ventured into coal mining business with an aim to meet about 20 per cent of our coal requirement fromcaptive mines by 2017," Choudhury said.The company requires around 178 MT during FY14, of which 145 MT is expected against fuel supply agreements or letter of assurances, 2 MT through bilateral or e-acution, 3 MT through captive mining and 28 MT from imports. NTPC has planned a capex of Rs 20,200 crore for the current fiscal, Choudhury said.About the impact of gas price hike on NTPC projects, he said, "currently our 4,000 mw plant has 50 per cent (fuel) availability, which we source from the Panna-Mukta-Tapti and KG D6 fields, where prices are administered, and re-gasified liquefied natural gas."We have another 4,000 mw project, but we have put the project on hold after the Government directive that no gas plants should be developed till 2017." The Centre last month approved an increase in gas price to USD 8.4 mmbtu effective April 2014. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
