The Union Ministry of Coal (MoC) has not yet provided any coal linkages for NTPC's Vallur Phase-II (1x500 MW) in Tamil Nadu and Muzaffarpur (2x250 MW) expansion project in Bihar.

MoC is yet to issue LoA for these two key projects to be implemented during 11th Plan. The MoEF has denied environment clearance to these projects, since valid fuel supply guarantees are a pre-requisite for the same. Now, CEA has asked the MoC to intervene in this matter and ensure the speedy allocation of coal supplies to meet the fuel requirements of the two projects.

The Vallur project is being executed by NTPC-Tamil Nadu Energy Company, an SPV floated by NTPC and Tamil Nadu Electricity Board. The expansion project is expected to be commissioned by 2012. In addition, the CEA had accorded techno-economic clearance for the Muzaffarpur project in 1993, and the Planning Commission had also accorded its approval in 1995, at an estimated cost of Rs 1,452.13 crore. The revised cost estimate, based on current price levels, is Rs 2,250 crore.

Besides, CEA has also requested the MoC to expedite the expeditiously grant the LoA to Stage-IV of 1,000 MW Vindhyachal Super Thermal Power project in Madhya Pradesh. The Board of Directors of NTPC had recently granted investment approval for the project, at an appraised current estimated cost of Rs 5,914.97 crore.

Also See:

NTPC signs MoU with Chhattisgarh for 4,000 MW power plant (13-Jul-09)