Coal news and updates

IMG slaps BG on NTPC for tardy progress of Talaipalli block

March 19: The Inter-Ministerial Group (IMG) has imposed a bank guarantee (BG) on NTPC for the tardy progress in the development of its Talaipalli coal block, according to an official release from the Ministry of Coal (MoC).

The investment in the block and end-user plant till June 2013 has been Rs 325.33 crore and Rs 1,139.17 crore respectively.

One of the conditions for the allocation of this block was that NTPC would commence generation from the 4,000-MW plant (for which the coal was to be produced) latest by the end of the 11th Five-Year Plan.

The IMG, after detailed deliberations, including the show-cause notice and NTPC's reply thereof, noted that this was a regionally explored block and as per the CCO's status report, the GR had been purchased, mining plan approved, in-principle approval of the environment clearance and forest clearance – Stage I had also been received.

The mining lease is not required in this case since the land has been acquired under the CBA Act, 1957. But, a part of the transfer of government land is pending with the government of Chhattisgarh for which notifications have been issued.

Taking into account that mine opening is pending for transfer of land by the state government as well as FC Stage II and that, against the scheduled date of production of February 25, 2011 the mine could not be opened, the IMG recommended a BG amounting to Rs 232.848.

NTPC, on its part, had said that the delay in mine opening is on account of the land transfer and approval of R&R by the Chhattisgarh government.