Delay in mining by NTPC from Jharkhand coal block under lens

The government has sought a report from the Coal Controller on delay in mining by NTPC from a Jharkhand mine which was alloted to the PSU about a decade ago.

The Coal Ministry has asked the Controller to inquire into non-mining of coal by NTPC on the basis of a complaint received from Bhu Visthapit Jagran Samiti, an association of villagers of Pakri Barwadih in Jharkhand.

"...You are requested to furnish a report to this ministry regarding the grievances (about non-extraction of coal from Pakri Barwadih coal mine)...At the earliest," the Coal Ministry has said in a communication to the Coal Controller Amit Acharya.

The company declined to comment.

The coal block, having geological reserves of 1,600 million tonnes, was alloted to NTPC in October, 2004.

The Samiti had earlier written to the ministry stating that the mine was allotted to the PSU in 2004 but the coal in not evacuated till date "due to mismanagement and poor planning of NTPC".

NTPC had earlier conveyed it to the ministry that the block is expected to start production from December.

The company had said that the mining plan, environment clearance and forest clearance pertaining to the mine have been obtained.

"Reasons for non-commencement of coal production despite all clearances can be attributed to lack of support of government of Jharkhand," NTPC had conveyed to the ministry.

The coal ministry had last year issued a show cause notice to NTPC seeking an explanation for delays in the development of the coal mine.

"You are hereby called upon to show cause...As to why the delay in development of coal block should not be held as violation of terms and conditions of the allotment of Pakri Barwadih coal block failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken for deallocation," the ministry had said in a letter date June 6, 2013 to NTPC.

NTPC Limited