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This is an archive article published on August 20, 2011

Power min to lower capacity of NTPC’s Jharkhand project

The tussle between Coal India and NTPC over the relocation of the latter’s proposed thermal power plant in Jharkhand seems headed towards a resolution.

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The tussle between Coal India (CIL) and NTPC over the relocation of the latter’s proposed thermal power plant in Jharkhand seems headed towards a resolution. The power ministry has “agreed to compromises” by lowering the installed capacity of the project by 680 MW and reducing the land area by 1,360 acres.

Coal India had demanded that the project be relocated as it threatens to block 6 billion tonne of coal. At the last meeting of the Group of Ministers (GoM) on coal,Power minister Sushilkumar Shinde ruled out complete relocation,but was willing to downscale on both installed capacity and land requirement in view of CIL’s demand.

“Shinde told he GoM that his ministry has agreed to certain compromises by lowering the installed capacity from 2000 MW to 1320 MW and reducing land size from 2330 acres to 970 acres,” a senior government official told The Indian Express.

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An NTPC official said that the PSU has firmed up its construction plans for the site and have incurred substantial investment. “Now if we are asked to relocate after nearly four years as we have acquired the land and other clearances it is unfair “ he said.

The power company believes that re-locating the North Karanpura project in Jharkhand’s Chatra district to some other site could also trigger similar demand from other quarters,which could upset its expansion plans.

Both coal and power ministries have been fighting a turf war over the issue for quite sometime.

NTPC feels that CIL’s arguments are specious as the seams are situated beyond the existing mineable standards. But the coal giant maintains that site of the project was located within 250 metres of coal seams,which would otherwise be available through opencast mining.

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