New Delhi: State-run power giant NTPC will soon set up a subsidiary to handle its coal mining operations and also plans to enter commercial coal mining after meeting its requirement, an official said.
The power sector behemoth also has a plan to list the coal subsidiary subsequently on stock exchanges.
"The NTPC will set a coal subsidiary. It would cover operations of its all coal mines and will be run like a coal company. It will have a culture of coal mining. This will help in recruiting professional and have a different cadre which would eventually help in their career progression," the official said on the condition of anonymity.
The power PSU has been allotted 10 coal mines to meet its fuel requirement of which work has been started in five mines.
"NITI Aayog has already given its approval for setting up a separate subsidiary for coal mining business. Finance Ministry's approval has been sought for the purpose."
The official further said that there is a possibility of commercial coal mining at a later stage.
"The company will sell coal to others from these coal mines in open market. But that will happen only after the NTPC meets its owns requirement. Thereafter, the surplus would be sold in open market."
The official said that the subsidiary will be listed on the bourse at a later stage.
NTPC has been allotted 10 coal blocks with geological reserve of over 7.3 billion tonnes and production potential of about 111 MMTPA (million metric tonnes per annum).
At present, the power PSU is working on five coal blocks with total geological reserves of 3.8 billion tonnes and mining capacity of 56 MMTPA.
NTPC has started mining at its first coal block Pakri-Barwadih in Jharkhand. As much as 4.3 MMT (million metric tonne) of coal has been extracted till June 2018. The production target for this mine in 2018-19 is 6.27 MMT.
Besides mining has been started at Dulanga mines in Orissa. The company plans to produce 1.68 MMT in 2018-19 from Dulanga mines.
The company has incurred a cumulative expenditure of Rs 5,063.75 crore till March 2018 for coal mining. During first quarter of this fiscal Rs 350.56 crore has been incurred on coal mining by the company.
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Updated Date: Aug 16, 2018 13:13:43 IST