India’s largest power producer, NTPC Ltd, has incorporated a wholly owned subsidiary by the name of ‘NTPC Mining Limited’ for taking up coal mining business. The company had listed the new subsidiary with Registrar of Companies, NCT of Delhi on 29 Aug’19.
NTPC made a foray into coal mining to ensure fuel security for its thermal power plants.
After government’s emphasis upon commercial coal mining, the main objective of NTPC’s coal mining arm would be likely to sell coal from its mines in the open market, after meeting its own needs.
The company had acquired 11 coal blocks with a view to become one of the largest captive coal mining companies in the country. Coal production has already started at Pakri-Barwadih and Dulanga block, while progress at different stages was informed with respect to the remaining blocks.
The Government has recently accepted NTPC’s request to surrender the Kudanali-Luburi coal block located at Odisha allotted to it jointly with Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC) in Jul’13.
However the count of captive blocks was kept intact after the deed of adherence for acquiring Badam coal block was signed. Notably, the linked coal block was procured along with the acquisition of Barauni TPS.
NTPC made substantial progress in coal mining with 7.31 MnT coal extracted in the last financial year. The company has targeted to produce 10.4 MnT of coal in FY20.
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