The Union government on November 22 decided to re-allocate three coal blocks, that could fire 8,500 mw electricity generation capacity, to the country's largest power producer National Thermal Power Corporation (NTPC).
The government's decision to re-allocate the coal mines -- Chatti-Bariatu, Kerandari and Chatti-Bariatu (South) -- comes at a time when the state-run NTPC is grappling with fuel shortages that are hurting its electricity generation.
Sources said that the Cabinet decided to give back the three coal mines to NTPC, sources said. These blocks were deallocated by the Coal Ministry citing long delay by the company in developing them. According to sources, these coal mines have an annual production capacity of 13 million tonne.
The three coal blocks can help in to generate about 8,500 mw of electricity, Power Secretary P Uma Shankar said. These mines were earlier allocated for NTPC's upcoming projects including 1,200 mw Barh II in Bihar.
The development comes on a day when the government cleared sale of its 9.5 per cent stake in NTPC, a move that could fetch the exchequer as much as Rs 13,000 crore.
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