NTPC Ltd, the leading power generation company in the country, has made substantial progress in coal-mining. The company’s captive mine-Pakri-Barwadih, had attained coal production of 6.81 MnT in FY19, thereby surpassing the mine plan production target for the year.
Applauding the performance of the mine, NTPC informed that Pakri-Barwadih was among the only two mines, which were elected as a model mine by the Director General Mine Safety.
Besides, the company also highlighted that it had started coal production from its second coal mine-Dulanga during FY19, wherein 0.5 MnT coal was extracted in the period.
NTPC has been allocated eight coal blocks namely- Pakri-Barwadih, Chatti-Bariatu & Chatti-Bariatu (South), Kerandari, Dulanga, Talaipalli, Banai, Bhalumuda and Mandakini-B, in order to ensure fuel security for its power stations.
In addition, the company also holds Kudanali-Luburi coal block, which was jointly allocated to NTPC and Jammu & Kashmir state, and Banhardih coal block, allocated to NTPC’s JV- Patratu Vidyut Utapadan Nigam ltd (PVUNL).
Altogether, these 11 coal blocks accounts for a total estimated geological reserves of about 7.3 BnT, from which the company intends to produce 119 MnT coal annually.
Status of Remaining Coal Blocks:
NTPC has raised concern over the development of Talaipalli and Chatti-Bariatu coal blocks, whose MDO (Mine Developer-cum-Operator) contract remain suspended. However, the block development activities like land acquisition payments and infrastructure development activities were still in progress.
For Kerandari coal block, the company stated that mining operation would be carried out departmentally with limited outsourcing. It was further revealed that tenders for appointing mine operator and other mine infrastructure facilities were already been floated.
As per allotment agreement with Ministry of Coal, production from the three blocks i.e. Talaipalli, Chatti-Bariatu and Kerendari was scheduled to commence from Nov’19.
Mandakini-B coal block’s mining plan and infrastructure development activities were in progress. The mine has been envisaged to start coal production from October 2023.
NTPC’s Banai and Bhalumuda blocks were unexplored at the time of allotment. However, the company informed that the exploration of the blocks has been completed and the respective geographical reports were available.
Interestingly, in view of various roadblocks regarding development of the Kudanali Luburi coal block, NTPC has reportedly decided to surrender allocated share of coal mine in the said coal block.
NTPC’s Coal Sourcing in FY19:
During FY19, NTPC’s domestic coal sourcing stood 175.8 MnT as against 168.2 MnT in FY18 marking an increase of 4.5% Y-o-Y.
Out of 175.8 MnT of coal, 161 MnT was from Annual Contracted Quantity of coal, 6.6 MnT through Bridge linkage/ SCCL Bi-lateral MoU and 6.45 MnT from Pakri Barwadih. Further, in order to supplement coal imports as well as deficiencies in FSA coal volumes, the company participated in e-auctions of CIL & SCCL, booking 1.75 MnT coal in the process.
Notably, the company has entered into long term Fuel Supply Agreement (FSA) with CIL & SCCL for total Annual Contracted Quantity (ACQ) of 158.17 MnT & 11.2 MnT respectively and Bridge linkage of 4.65 MnT for Barh power station. In addition, a short-term MOU was done with SCCL for supply of 8 MnT coal.
NTPC’s reliance on imported coal remained negligible, contributing less than 0.6% in the total coal consumption during FY19. However, import volume has significantly gone up to 1.05 MnT in FY19 compared with 0.32 MnT in FY18, against the contracts being awarded for procurement of 2.5 MnT imported coal during Dec’18.
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