Ahead of disinvestment of its stake in NTPC, the government has decided to reallocate three of the five de-allocated coal blocks to the country’s largest power producer.
The move will boost the company’s value and fetch a better price for the government’s stake, it is hoped.
The coal ministry had punished NTPC for slow progress in development of the eight coal blocks allotted toit by de-allocating five of them in June 2011.
But on Tuesday, a ministry statement said Chatti-Bariatu, Kerandari and Chatti-Bariatu (South) coal blocks would be re-allocated to it. Together, the three blocks have coal reserves of 850 million tonne (mt) and can produce 13 mt annually.
The government, however, has decided not to return the Brahmani and Chichiro Patsima coal blocks.
NTPC has a power generation capacity of 39,647 mw. It currently requires 160 mt of coal annually, of which it imports 16 mt through tenders.
The government currently holds 84.5% stake in the company and plans to sell 9.5% to help meet its target of generating Rs30,000 crore through disinvestment in PSUs. It hopes to mop up around Rs13,000 crore from the NTPC stake sale in February.
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