Clearances before-hand will make coal auction a success: NTPC

New Delhi: State-run NTPC today said the proposed coal block auction next year by CIL would be more successful if the the government secures all the requisite clearances before inviting bids.

“Environment clearances, land acquisition should be done beforehand, otherwise the companies may not be interested in bidding for those blocks,” NTPC chief Arup Roy Choudhury said in New Delhi today.[caption id=“attachment_529522” align=“alignleft” width=“380”]  NTPC chairman Arup Roy Choudhury. Image courtesy NTPC[/caption]

He said the geological reserves should be ascertained in advance and coal mining plan should be approved to attract more investors for coal blocks.

Fifty-four blocks are likely to be auctioned.

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However, the Power Minister Jyotiraditya Scindia declined to comment on the issue of coal block auction.

“I do not want to comment on the coal block auction. My immediate action point is to ensure that we get in place the fuel linkages for 60,000 MW so that we can get those projects on line,” Scindia said.

Roy also alleged that Coal India Ltd (CIL) is supplying inferior quality of coal to some of its thermal power stations.

“We have intimated that there is a difference in the calorific value of the coal which is stated by Coal India when they supply us the coal and what we are receiving at our stations,” he told reporters.

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“We have not said anything about overcharging and this is an issue which has to be resolved, I am sure the (power) ministry is taking it up,” he said.

The chairman added that it is only happening at some locations, say from some mines in Uttar Pradesh.

GCV formula or benchmarking coal on the basis of its gross calorific value came into practice, in line with international practices, from 1 January 2012.

Prior to this the domestic coal was classified on the basis of UHV (useful heat value) into seven grades from A-G. UHV is based on ash and moisture contents for non-coking coals in line with the government’s directive.

On the pooling of prices of coal, Choudhury said, “Pool pricing will affect my customer not me, as fuel prices are a pass through, so my customer has to agree to it.”

PTI