Government accepts NTPC's request for surrendering coal mine

NTPC has targeted to produce 10.4 million MT of coal in this financial year.

Aug 22, 2019 06:08 IST India Infoline News Service

NTPC Ltd, India’s largest power generating company, said that the Government has accepted its 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 July 2013.

The company said that the mine was allotted for developing 1320 MW Bilhaur thermal power plant at Uttar Pradesh, which now is being developed as a solar plant and Power Purchase Agreement for this has been signed with Uttar Pradesh.

In this context, NTPC wrote to Ministry of Coal to surrender the mine.

NTPC currently has 10 coal blocks i.e. Pakri Barwadih, Chatti Bariatu (including Chatti Bariatu-South), Kerandari, Dulanga, Talaipalli, Bhalumuda, Banai, Mandakini-B, Banhardih and Badam Coal block with geological reserves of over 7.3 billion tonnes & production potential of about 113 Million Tonnes Per Annum.

The company has also made substantial progress in coal mining and approx. 7.31 MMT coal was extracted from Pakri-Barwadih and Dulanga mines in the last financial year. NTPC has targeted to produce 10.4 million MT of coal in this financial year.

Stock view:
NTPC Ltd is currently trading at Rs116.05, down by Rs1.9 or 1.61% from its previous closing of Rs117.95 on the BSE.

The scrip opened at Rs118 and has touched a high and low of Rs118.25 and Rs115.15 respectively.

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