The Hindu Business Line : NTPC scouts for coal blocks in Indonesia, Australia, S. Africa

The proposed overseas foray for coal blocks is part of NTPC's overall strategy to meet 25 per cent of its total coal requirement solely from its captive mines.

New Delhi , Dec. 20

NTPC Ltd is scouting for coal blocks in Indonesia, Australia and South Africa. The company is deputing high-level teams to these countries, with the first team already having been sent to Indonesia, to search for the possibility of bagging a coal mine abroad.

The teams are expected to submit their report on the feasibility of tying up coalmines abroad by March-April 2007. The power generation major — the biggest user of coal in the country — plans to take up the coal mining ventures abroad through a joint venture with South Eastern Coalfields Ltd (SECL) — the largest coal-producing subsidiary of Coal India Ltd.

Fuel Shortages

NTPC has been resorting to importing coal from countries such as Australia to tide over fuel shortages experienced at its coal-based stations during much of the last fiscal.

The company, which has already begun aggressively pitching for coal blocks in the country, is now looking at bagging blocks abroad to diversify supply risks and also since foreign coal mines produce superior coking coal with higher calorific value and lower ash content compared to the coal produced here, company officials said.

The proposed overseas foray for coal blocks is part of NTPC's overall strategy to produce around 50 million tonnes of coal by the year 2017 with the aim of meeting close to 25 per cent of its total coal requirement solely from its captive mines.

Coal Production

On the domestic front, NTPC has lined up investments to the tune of around Rs 6,000 crore for developing its 15-million-tonnes per annum Pakri Barwadih captive mine — the first of a series of eight mining blocks allotted to power major. The company is hopeful of starting coal production from the mine by around May 2008, NTPC officials said. Besides this, the company has bagged seven blocks, including two to be operated through a 50:50 joint venture with Coal India Ltd.

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