The Hindu Business Line : Plan panel urges NTPC to enter coal production

In a report given by the power and energy division of the Plan panel, it has said that NTPC take up coal production faster and use its resources for coal production in captive mines of other companies.

In an earlier report it had suggested Coal India Ltd (CIL) enter power production. CIL is in the process of finalising plans for a pithead power plant.

The panel has urged the Power Ministry to finalise an action plan for early coal production in captive blocks of National Thermal Power Corporation (NTPC).

The panel has also said that NTPC's managerial and financial resources should be utilised for development and early production in coal blocks and other public sector undertakings (PSUs).

This is because less than a quarter of the 86 coal blocks are allotted for captive mining to PSUs and private sector companies.

To make the process simpler, the commission has also suggested policy changes for permitting buyback by coal PSUs from the allottees of captive blocks so that they can be developed quickly and independent of the implementation of the downstream project.

The commission has cited the example of the 2,000-MW Talcher stage II plant that was commissioned ahead of the development of the linked mines of Kaniha I and II and Bhubaneshwari. As a result production has suffered and now efforts are being made to increase coal supply to Talcher through ad-hoc arrangements from alternative coalmines at Ib valley, it said.

Noting that the number of power stations with critically low coal stocks was as high as 20 in March this year, the commission has asked the Ministry of Coal to prepare an emergency plan for augmenting coal production by 10 million tonnes during 2006-07, which would be coupled with an additional import of 13.45 million tonnes of coal during the year.

In order to prevent State level delays because of differences in mining related rules in various States, it has been suggested that a group under the Cabinet Secretary would review, with the Chief Secretaries of the States concerned, the clearances for new coal mining blocks.

It has also suggested that NTPC be allowed to acquire technology from Germany to enhance the fuel conversion efficiency of its existing plants by an average of 30 to 35 per cent. It has also said that no new thermal plants should be allowed without a certified fuel conversion efficiency of 38 to 39 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page