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For NTPC, work continues in coal blocks

14 Oct 2014

NTPC will go ahead with the development work in coal blocks allocated to it between 1993 and 2010 while it seeks clarity on interpretation of the September 24 Supreme Court order.

A senior NTPC official said that the company hopes to approach the Court shortly seeking clarification on issues such as – whether all blocks allocated to central public sector undertakings have been exempted, and how work in progress has been defined.

“The de-allocation will be effective from April 2015, as the Court has granted time till March 31, 2015. We have around six months. We want to continue work in these blocks,” the official said.

Following the apex court verdict, the fate of NTPC’s five coal blocks hangs in balance. The Court had ordered de-allocation of blocks, except those given to ultra mega power projects and Central public sector units where there are no joint ventures. Confusion arose with the Court specifically saving four blocks, including NTPC’s Pakri Barwadih. NTPC had 10 coal blocks, of which one that was not de-allocated is set to commence operations soon. The company had got four blocks recently, while six were awarded earlier. Of the six, one was exempted from de-allocation by the apex court.

“The moot point is that these blocks are at various stages of development, and each of them came into commercial production at different time lines. For example, development of a block itself falls into different phases, so how does one define the period of production,” the official added.

Source: The Hindu BusinessLine