Coal pool pricing will not impact NTPC, says Chairman

NTPC on Tuesday said it is important to have in-principle green clearances when coal blocks are auctioned.

“Environment clearances, land acquisition should be done beforehand, otherwise the companies may not be interested in bidding for those blocks,” Arup Roy Choudhury, Chairman and Managing Director of NTPC.

Choudhury also added that geological reserves should be ascertained in advance and coal mining plan should be approved to attract more investors for the coal blocks.

The Government proposes to allocate 54 mines. However, the nodal Coal Ministry is yet to come up with a clear roadmap for the auction process.


The NTPC Chairman said that pool-pricing, if implemented, would not impact NTPC as it passes on increase in fuel cost to customers. “Basically, customers have to agree to it,” he said.

“We are willing to take imported coal from Coal India but it should be comparable to the price that we are getting in our tenders. NTPC has no role in pool pricing,” Choudhury said.

Jyotiraditya Scindia, Minister of State for Power (Independent Charge), said the issue of pooling of coal and taking fuel as a pass through was being evaluated by his Ministry.


NTPC reiterated that it would sign fuel supply agreements (FSAs) on earlier terms.

“We have no problem in signing of FSAs and our basic contentions remain the same. Our MoUs are for expansion in the same stations. And our FSAs for this expansion cannot be different from the existing ones,” Choudhury said.

He added that any new condition that is being incorporated now cannot be accepted as NTPC cannot have two FSAs for the same station.

(This article was published on November 20, 2012)
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