State-run NTPC today said the law and order situation is not “conducive” in Pakri Barwadih coal block area in Jharkhand for carrying out mining operations.
“Land owners are agitating for a higher land compensation and the law and order situation in that area is not conducive,” NTPC CMD Arup Roy Choudhury told reporters here.
He said the compensation for land acquisition has already been paid by the company as stipulated by the State government but farmers are still agitating. Settlement of unauthorised migrants has also been done, he added.
The NTPC chief said mining activities at the site can commence within 48 hours of receiving approvals.
The Pakri Barwadih coal block was allocated to the company in 2004 and mining was expected to start in February this year. The work at the site has been, however, stalled due to agitation against land acquisition.
Peak coal production from Pakri Barwadih mines is expected to touch 15 million tonnes per annum, starting with 3 million tonnes per annum in the 12th Plan period (2012—17).
Choudhury said the total coal production from the company’s 10 coal mines in different States is likely to be in the range of 38-40 million tonnes per annum by the year 2017.
NTPC requires 160 million tonnes of coal this fiscal and will import 10 per cent of that quantity.
“We are importing 16 million tonnes coal this year,” N N Misra, Director (Operations), NTPC told reporters here
NTPC, which generates 42,454 MW electricity, plans to add 14,000 MW power in the 12th Plan period (2012—17).
“We have already commissioned 5,440 MW capacity of the 12th Plan target and another 500 MW will come up by March 2014,” he added.
The power producer is also looking at picking up stakes or fully acquiring mines overseas.
“Yes we are looking at this option,” Choudhury said when asked about plans to buy out coal mines abroad. He, however, did not divulge details.
On Rs 1,750 crore tax—free bonds that opens tomorrow, Choudhury said: “The base issue size aggregates to Rs 1,000 crore with an option to retain over—subscription up to Rs 750 crore for issuance of additional bonds, aggregating to up to Rs 1,750 crore.”
Under the offer, the company will issue tax-free secured redeemable non-convertible bonds.
The funds raised through the issue would be utilised towards funding of capital expenditure and refinancing for meeting the debt requirement in ongoing projects.
Shares of NTPC closed at Rs 147.30, down 0.03 per cent on the BSE today.