Ending delays in its captive mining effort, NTPC Ltd expects to start coal mining from its huge Pakri Barwadih block in Jharkhand in the second half of 2008-09. The block was awarded to the power utility in October 2004 but several impediments related to land acquisition, forest clearance and mining operatorship resulted in a delay of at least two years in the production schedule.
Located in the prolific North Karanpura coalfields of Jharkhand, the PB block has estimated reserves of 1.6 billion tonnes out of which at least 700 million tonnes are mineable. Once production starts from the PB block, it would be NTPC's first step in achieving coal security. NTPC is estimated to invest around Rs 1,800 crore to bring to the PB block to production. At peak production, the block could yield 15 million tpa, although production would begin at lower levels, NTPC officials said.
As far as domestic reserves are concerned, NTPC has been alloted eight coal blocks with aggregate reserves of nearly 6 billion tonnes, spread over Jharkhand and Orissa. Two of these—Brahmani and Chichro-Patsinal, both in Orissa—would be operated in equal partnership with Coal India Ltd. The Brahmani block is said to hold 1.9 billion tonnes of coal. NTPC is also pursuing coal block acquisition in Indonesia and Mozambique, and is also part of a multi-partite special purpose vehicle “International Coal Ventures Ltd” to explore coal mining opportunities in Australia, Indonesia etc.
By 2012, NTPC is expected to annually need around 225 million tonnes of coal against 130.71 million tonnes consumed in 2008-09. According to industry norms, 1 million tonnes of coal is needed to run coal-fired power capacity of 200 mw for a year. By this standard, NTPC's projected coal requirement stands for 45,000 mw of coal-fired capacity. NTPC has projected to add a total power capacity (including that owned in joint venture) of 22,430 mw during the 11th Plan period (April 2007 to March 2012). Out of this, 2,740 mw was commissioned in the first two years of the Plan period, while another 3,300 mw is scheduled to commission this fiscal, 2009-10. NTPC recently crossed the 30,144 mw installed capacity mark, including 2,294 mw coming from joint venture projects (this includes gas-fired capacity). By 2012, NTPC would have over 50,000 mw of power capacity—mainly coal but also including hydropower and renewable energy.
Currently, domestic coal (sourced from Coal India Ltd) meets 95 per cent of NTPC's requirement of coal-fired plants, while the rest is imported. In 2011-12, NTPC expects that captive coal production would be 15 million tonnes, mainly coming from the PB block. NTPC also expects to import 15 million tonnes, while Coal India and its subsidiaries would supply the bulk—195 million tonnes. It is also learnt that the mining plans for two more coal blocks have been approved by the coal ministry. These mines—Chatti Bariatu and Kerandari—are expected to together yield 13 million tonnes of coal per year.
As an industry thumb rule, coal production from alloted blocks is expected to have a gestation period of 72 months, including 27 months for preparation of the geological reserve report, which is applicable in the case of unexplored or partially-explored blocks.
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