No windfall gains in coal mine allocation: NTPC

efuting claims that even pubic sector undertakings had benefited from the failure of the government to auction coal assets, state-run NTPC, on Thursday, said it had not reaped any windfall profit from the coal mines allocated during 2004-09. “There is no way by which NTPC can make windfall profit out of the coal produced from these mines as, under the CERC-regulated regime, the cost of coal from these mines will be pass-through in the power tariff. Therefore, it will only help reduce the ultimate cost of power at the end-user,” NTPC Chairman and Managing Director Arup Roy Choudhary said. Fuel accounts for about 80 per cent of tariff of power produced from a coal-fired plant. Mr. Choudhary said the coal mines were allocated to meet some portion of NTPC's coal requirement since Coal India was not able to meet the company's requirements. “These mines, which were allocated to NTPC, had to be developed, that is, surveys, soil investigation, environmental clearance, mining plan approval were to be done by NTPC before any activity could start. Now, at one of the mines allocated, removal of over-burden has been started, Mine Developer-cum-Operator (MDO) has been appointed for one more mine and appointment of MDO for two more mines is in the process,” Mr. Choudhary said. In a statement here, the Confederation of Indian Industry (CII) called for the need to introduce competitive bidding for allocation of captive coal blocks. Since 1993, around 213 captive coal blocks had been allocated. Of which, only 28 had commenced production till date, it said. During the last three years, the government allocated 42 blocks but none of them has started production. Thus, it is evident that the allocation of coal blocks without the introduction of competitive bidding has led to the tardy development of coal blocks. “For viable and sustainable development of power sector, it is imperative that supply of coal increases at a rate which is at least equivalent to the growth in coal-based capacity addition. One way to achieve this is by auctioning coal blocks through competitive bidding. This method will not only augment the future coal supply but will also ensure that only serious players bid for the development of coal blocks,” it said. Keywords: coal auction, NTPC Share Ads by Google Mine Seals & Grout Bags Inflated Shaft & Tunnel Seals,Grout Bags, Packers Standard & Custom www.PetersenProducts.com Related TOPICS economy, business and finance Comments: Your Name: email: Make a comment characters left What is 78 + 8? 1. Comments will be moderated 2. Comments that are abusive, personal, incendiary or irrelevant cannot be published. 3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and'). 4. We may remove hyperlinks within comments. 5. Please use a genuine email ID and provide your name, to avoid rejection. Click Here! Slideshow Union Budget 2012-13 In a mix of sops and imposts, the General Budget 2012-13 proposed a marginal raise in income tax exemption limit of Rs. 20,000 but hiked service tax and standard excise duty more slideshows » Union Budget 2012-13 - Live updates Latest in this section Vodafone case: government waiting for Parliament nod for I-T Act amendment Volvo, Skoda raise prices by up to Rs.1.30 lakh New Sonata from Hyundai No windfall gains in coal mine allocation: NTPC Ennore LNG terminal to cost Rs.4,320 crore On a business trip down under Godrej Properties' issue oversubscribed U.S. slaps tariff on Chinese solar panels Expert help sought for coal block auctions Govt clears 16 FDI proposals Ads by Google Most Popular Most Commented Rupee drops to 9-week low at 50.90 vs dollar Sensex tumbles 405 points on weakening rupee Govt clears 16 FDI proposals 2:17 swap for Tech Mahindra, Mahindra Satyam merger L&T Construction bags orders worth Rs 1120 cr Muthoot, Manappuram stocks take a hit Honda, Audi cars to cost more Highlights of Union Budget 2012-13 GM launches new Tavera U.S. slaps tariff on Chinese solar panels Ads by Google Vivanta by Taj - Dal View Experience an Extraordinary View of Paradise on Earth. Book Online Now! VivantabyTaj.com/DalView_Srinagar Social Please remember to logout of facebook after you complete this session. Today's Paper Today's Paper ePaper This Day That Age Crossword Archives Obituary Group Sites The Hindu Business Line Sportstar Images Frontline