Coal Min revokes licences of 2 more NTPC blocks

NEW DELHI: The coal ministry on Friday cancelled allocation of two coal blocks of NTPC for not developing them within the stipulated time frame. The blocks -- Brahimini in Jharkhand and Chichro Patsimal in Orissa -- hold 2,256 million tonnes coal reserves and were allocated to the company in 2006.

The coal ministry on Thursday issued orders to revoke mining licences of five blocks of NTPC, Damodar Valley Corp and Jharkhand State Electricity Board with combined reserves of 1,000 million tonnes. The power ministry said it would take up the issue with coal ministry and higher authorities.

NTPC floated a joint venture company with Coal India Ltd to develop Brahimini and Chichro Patsimal blocks to meet coal requirement of Farakka and Kahalgaon expansion projects.

The coal ministry had last month announced decision to revoke licences of 15 coal and lignite blocks, 12 of which belonged to state-run companies. On June 1, letters were issued to three companies Bhaidyanath Ayurved Bhavan, Andhra Pradesh Power Generation Corp and Bhatia International for cancellation of five blocks.

The move is followed by recommendations of a review committee on progress of coal blocks. The panel had originally recommended de-allocation of 31 coal blocks held by 26 firms including Tata Steel, NTPC, Hindalco and Nevyeli Lignite Corporation. The de-allocated blocks would be allotted to Coal India Ltd or its subsidiaries for mining.