Pact with NTPC for coal supply depends on availability: CIL

As its decision to offer coal to NTPC comes under high court's radar, state-owned CIL today said the proposed pact with the power producer is a long-term arrangement and will depend upon the availability of coal.

It may be noted that the Delhi High Court on May 25 asked CIL how it was offering coal from two Chhattisgarh mines to NTPC when it had cited production issues to cancel an e-auction of 49,000 metric tonnes (MT) of the mineral, mined from the same Gare Palma IV/2&3 blocks.

In the coal auction earlier this year, Jindal Steel & Power (JPL) had emerged as the highest bidder for Gare Palma IV/2&3 blocks. However, the mines were not allotted to the company.

The proposed MoU between South Eastern Coalfields (SECL), a CIL arm, and NTPC is yet to be finalised for Barh-II power plant from Gare Palma mines, CIL said in a BSE filing.

Coal India (CIL) further clarified that delivery order for e-auction from Gare Palma IV/2&3 mine was cancelled as the "consent to operate" for the mines was awaited from Chhattisgarh Environment Conservation Board.

"The proposed MoU with NTPC is a long-term arrangement for the evacuation of coal from the said mines and supply of coal under MOU shall be on best effort basis and would depend on availability of coal/grade(s) from Gare Palma IV 2/3," CIL said.

"SECL may conduct e-auction in future from Gare Palma coal block(s) depending upon the availability of coal and keeping other aspects like valid consent to operate etc. into consideration."

NTPC said that "there is no firm offer from CIL to supply coal from Gare-Palma coal block to NTPC."