NTPC seeks advice to surrender 2 coal mines in Chhattisgarh

State-owned National Thermal Power Corporation (NTPC) has sought the advise of consultancy arm of Coal India, CMPDIL, to surrender its two coal blocks as the mines were discovered to be economically and technically unviable.

The Banai and Bhalumuda coal blocks in Chhattisgarh are adjacent to each other and facing difficulty in dumping of overburden as the area surrounding the blocks is coal bearing, an official said.

"It was informed to NTPC that if the blocks are found economically and technically unviable, then there is a provision in CBDPA (Coal Block Development and Production Agreement) to surrender the blocks after the exploration period is over. They (NTPC) are consulting CMPDIL for the same," the official said.

The stripping ratio of these blocks is also very high, the official said adding that NTPC was adviced to examine the feasibility of the said blocks in detail. Banai coal block was alloted to NTPC in March 2015 and the production is expected by 2020. Bhalumuda coal block was also alloted in the same year and the production is expected by 2021.