Power, Coal Mins to speed up NTPC coal blocks re-allocation
New Delhi: The Power Ministry is in constant touch with Coal Ministry to speed up the re-allocation of three mines to NTPC, which would boost the power producer's valuation ahead of its Rs 12,000 crore disinvestment this fiscal.
The government has decided to re-allocate three coal blocks -- Chatti-Bariatu, Kerandari and Chatti-Bariatu (South) -- to NTPC but all the necessary clearances are not in place.
"We are in constant talks with the Coal Ministry to speed up the re-allocation of coal mines to NTPC," Power Secretary P Uma Shankar told reporters.
He did not share specific details.
Re-allocation of the coal blocks would boost the overall market valuation of NTPC, which is grappling with fuel shortages. Better share prices, during disinvestment, would in turn help in fetching higher returns for the government, which is hard-pressed for resources.
"The re-allocation (of coal mines) will improve NTPC's valuation," Shankar said.
The three blocks were taken back from NTPC by the Coal Ministry citing long delays in developing them.
Last month, a Power Ministry official had said that preparations for NTPC share sale would start only when the three coal blocks are re-allocated.
Power Minister Jyotiraditya Scindia, last month, had said the coal blocks would be re-allocated at the earliest.
In November 2012, the Cabinet Committee on Economic Affairs had approved NTPC stake sale.
The country's largest power producer NTPC became public with its initial public offering hitting the market in 2004. Thereafter in 2009, the government further diluted its stake in the company through a Follow-on Public Offer (FPO).
Government holds 84.50 percent in NTPC, a 'Maharatna' company, which has a capacity of 39,674 MW -- roughly one-fifth of country's current installed generation capacity.
So far this fiscal, the government has mopped up over Rs 6,900 crore through disinvestments in public sector companies. It has set a target of raising Rs 30,000 crore in the financial year ending March 2013.