NTPC to appoint developer for Jharkhand coal mine soon

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26 Aug, 2025 12:21

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State-owned power producer NTPC will soon appoint a mine developer and operator (MDO) for its Pakri-Barwadih coal block in Jharkhand. "MDO (for Pakri-Barwadih coal block) very close to be appointed," NTPC said in an investor presentation 2015. NTPC has earlier cancelled Rs 23,000-crore contract with Thiess Minecs India to develop this block due to delays.

The company further said that it is also in the process of appointing MDO for developing Kerandari coal block in Jharkhand. Earlier, NTPC had informed the Coal Ministry that it was pursuing the case with the Jharkhand government and the block was expected to start production from December, last year. Mining plan, environment clearance and forest clearance pertaining to the mine have been obtained, the company had earlier informed the government.

"Reasons for non-commencement of coal production despite all clearances can be attributed to lack of support of government of Jharkhand," it had said. Thiess Minecs was appointed mine developer and operator for NTPC's Pakri-Barwadih mine in November, 2010, after a global tender. The company wanted to start mining coal to reduce dependence on the market for the fuel.

The contract, valued at an estimated Rs 23,000 crore, was for a period of 27 years, the company had said, adding that the development period was 360 days ending November 25, 2011, with the remainder for operations. Thiess Minecs is a 90 percent subsidiary of Thiess Pty Ltd, Australia, which is a mining, construction and services contractor. NTPC had issued a show-cause notice to Thiess Minecs on July 10, 2012, stating the defaults and non-fulfilment of contractual obligations by the company without any response.

The power PSU had also said the matter was not taken very seriously by the Australian authorities.