In a letter to Chairman-cum-Managing Director of NTPC on June 14, 2011, the Coal Ministry wrote: “The targeted date of coal production from this block as per normative milestones was already over, the Ministry of Coal is of the view that allocatee company is not serious about development of coal blocks and has therefore decided to deallocate Brahmini and Chichro Patsimal coal blocks allocated to NTPC.”
Both the blocks Brahimini and Chichro Patsimal in Jharkhand were allocated to NTPC in 2006.
The development has come after the Coal Ministry cancelled three coal blocks — Chhati Bariatu (South), Chatti Bariatu and Kerandari in Jharkhand — allocated to the PSU.
According to an agreement signed between NTPC and Coal India in 2009, a Joint Venture Company (JVC) was to be formed to develop these mines in order to meet the coal requirement of Farakka and Kahalgaon expansion projects of the power firm. However, according to the letter written by the Coal Ministry, “JVC has not yet been finalised”.
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