NTPC to start coal mining from Jharkhand block by March

NTPC, the country's largest power producer, will foray into coal mining by starting production at its Chatti-Bariatu mines in Jharkhand by the end of the current financial year.

"Production from the Chatti-Bariatu mines is expected to be around 1 million tonnes and will commence by the end of the fiscal," a company official said.

NTPC has ventured into coal mining in a bid to create fuel security. The utility plans to meet about 20% of its requirement of coal from its captive mines by 2017.

The company has been allotted seven coal blocks -- Chatti-Bariatu, Chatti-Bariatu (South), Pakri Barwadih, Kerandari, Brahmani, Chichiro Patsimal and Dulanga. These blocks are in the coal-rich state of Jharkhand, with the exception of Dulanga, which is in Odisha.

Brahmaputra Infrastructure Ltd, in a consortium with BLA Projects Pvt and GSCO Infrastructure, bagged the contract for developing and operating the Chatti-Bariatu mine in 2013.

The NTPC board had in February 2013 approved an investment of Rs 1,314 crore for mining in this block, which has a capacity to produce 7 million tonnes per annum.

The allotment of the Chatti-Bariatu block to NTPC had been cancelled by the coal ministry for delays in development in June 2011 and restored to the company in January 2013.

NTPC recently cancelled a contract worth Rs 23,000 crore with Thiess Minecs India due to delays in the development and operation of the Pakri-Barwadih coal block, setting back production from the planned mine.

The company purchased 160.63 million tonnes of coal in the year ended March 2014, of which 10.84 million tonnes were imported, according to a BSE filing on May 15.

NTPC reported an over 29% drop in net profit for the fourth quarter ended March 31 to Rs 3,093.54 crore after fuel costs surged. Profit a year earlier was higher at Rs 4,381.61 crore on account of recovery of dues.

Fuel costs climbed to Rs 14,434.11 crore in the quarter from Rs 10,389.69 crore in the year-ago period.

NTPC currently has an installed capacity of over 43,000 MW and has plans to add 14,038 MW by 2017.