The Law and order situation may compel NTPC to opt out of its mining projects in Jharkhand.

The country’s largest power producer has been allocated four blocks – Pakri Barwadih, Kerandari, Chhatti Bariatu and Chhatti Bariatu-II – in Jharkhand to feed its power stations.

“The company is caught in the cross fire. NTPC is now thinking to come out of mining in Jharkhand due to obstacles and demoralisation of the staff,” a source privy to the development told Business Line .

The recent firing incident between police and villagers near Pagar is one such incident. Though NTPC was not involved in the incident the local police has registered five first information reports (FIRs) naming NTPC officials.

Nearly 26 companies have been given coal blocks in the State. However, no one is able to go-ahead with their projects because of law and order issues, the source added.

NTPC is planning to start coal production from Pakhri Barwadih in 2013-14, but it would get further delayed.

The Jharkhand Government approved the resettlement and rehabilitation (R&R) plan for Pakri Barwadih on February 27 and Chatti Bariatu on July 8. It is only after these approvals that NTPC can start disbursal of final rehabilitation money which has been agreed to by all concerned.

NTPC, as per Government directions, has increased land compensation to Rs 15 lakh an acre from Rs 10 lakh. Further, Rs 36,000 an acre per annum annuity is being given in lieu of a job and a good house is being allotted in the rehabilitation colony.

siddhartha.s@thehindu.co.in

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