The coal ministry has cancelled allotment of five coal acreages, including three given to state-run generation utility NTPC, on the ground that the companies “were not serious in developing them”. This issue was highlighted by us in the article on competitve bidding for coal blocks The utility hit back, saying the decision was “irrational” and lacked “transparency” since the company has completed more work in its blocks than other private firms had done in their mines. The cancellation is contrary to coal minister Sriprakash Jaiswal’s recent statement, saying he would review the decision.
“NTPC is committed to timely development of these blocks and has put all-out efforts for early development… The whole process/decision of de-allocation is not at all transparent and needs a holistic and rational review,” a top company executive said. “If compared with the contemporary coal blocks, NTPC is ahead of others. Even the blocks adjoining to these coal blocks in North Karanpura coalfield are much behind NTPC’s blocks and yet they are not in the de-allocation list,” the executive said.
NTPC was given Chhati Bariatu (South), Chatti Bariatu and Kerandari blocks in Jharkhand. Chatti Bariatu and Kerandari blocks in North Karanpura coalfields were allocated in 2006, while it got Chatti Bariatu (South) in 2007.
The power ministry had written a letter to the coal ministry earlier this month, asking for an “urgent” review of the decision to cancel allocations to NTPC. The power ministry had expressed concern that NTPC’s plans of adding over 15,000-mw generation capacity were likely to get hit if the allocations were cancelled. The letter prompted Jaiswal to say his ministry would review its decision, provided the reasons put forward by the power major for its failure to develop the blocks were genuine.
Saharpur Jamarpani and Banhardih — both in Jharkhand — are the other blocks, where the allocation has been cancelled. Saharpur Jamarpani was allocated to Damodar Valley Corporation in 2007, and Banhardih given to Jharkhand State Electricity Board in 2006.Last year, the coal ministry had issued notices on allocation of 84 coal and four lignite blocks. It had sought explanations from the companies about why their allocation should not be cancelled.
The use of renewables for generating power is to be congratulated. The latest coal market news is that emerging countries are predicting to use large amounts of thermal coal for power generation and metallurgical coal for steel production.
ReplyDeleteCherry of www.coalportal.com