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Developing coal blocks: NTPC may revise its invitation to contactors

State-owned NTPCBSE 0.62 % may revise its invitation to contactor to develop its two coal blocks by segregating land acquisition and rehabilitation from mining job after its notice inviting tenders failed to get the enthusiastic response it expected.

The power major had last month issued notice inviting tenders for contractors, or mine developers and operators (MDOs), interested in developing the Talaipalli coal block in Chhattisgarh and the Dulanga block in Odisha. The developer had to take care of challenging issues of land acquisition and rehabilitation and resettlement (R&R).

While its received interests some NTPC officials said the company may consider coming out with a fresh tender after segregating land acquisition and R&R, as it may help attract better offers, hopefully from foreign operators too.

An email sent to the company spokesperson for an official comment did not get a response till press time on Wednesday.

Back in December 2010, NTPC had signed up Thiess, a subsidiary of Australian company Leighton, to develop the Pakri Barwadih block in Jharkhand in a Rs 23,000-crore deal. In May last year, however, it cancelled the deal, accusing Thiess Minecs (a joint venture where Thiess holds 90% share) of failing to do the job in time.

Thiess, which has appealed to an arbitration tribunal, countered saying it was NTPC's job to hand over the 6,600 plus acres of land under the project.

Raman Srikanth, chief executive of Thiess Minecs, declined comment on the Pakri Barwadih issue, but said Thiess would consider participating in blocks put out in the future.

NTPC's notice inviting tenders — seeking an MDO that would "facilitate to acquire all land on behalf of the owner" and "liaison with district administration and state government officials" — is in line with a strategy adopted by other PSUS such as Steel Authority of India Ltd.

After several aborted attempts, the steel major finally picked Lanco to develop it Tasra coal block in April 2013, but only after it had "sweetened" the tender with coal washing, and a reject-based power plant to the list of jobs for it contractor. SAIL chairman CS Verma and company spokesperson didn't respond to email and messages seeking comments as of press time.

Several senior NTPC officials, who spoke to ET on condition of anonymity, said outsourcing the task of land acquisition and R&R is the best way to avoid the delays and roadblocks of the past.

"Private mining contractors are in a better position to cajole or coerce, do whatever it takes to get the project started," one of them said.

Another official said, "Passing it all on to the contractor hasn't always worked, and maybe owners and MDO must develop a partnership model."

The Modi government has raised more than Rs 2 lakh crore from the auction of 29 coal blocks. NTPC now has nine blocks including three newly allocated ones.

The government is trying to push through a bill to amend the Land Acquisition Act that, among other changes, seeks to do away with the "impossible" provision requiring consent of 80% of affected families.

Like all the new coal block owners, NTPC has two years to develop the blocks allocated to it.

"Bill or no bill, the ground reality remains just as difficult. State administration must step up to draw up once and for all the number of claimants and nature of their claim," an official said.

source: http://economictimes.indiatimes.com