Business Daily from THE HINDU group of publications
Saturday, May 30, 2009
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Business Daily from THE HINDU group of publications Saturday, May 30, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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Alliances & Joint Ventures Web Extras - Power
Our Bureau Kolkata, May 29 NTPC Ltd and Coal India Ltd (CIL) will shortly enter into an agreement for launching a 50:50 joint venture for mining coal as well as setting up a 4,000 MW pit head power plant at Brahmani coal block near Rajmahal coalfields in Jharkhand. The development is to pave the way for CIL’s entry in upstream energy sector. CIL is negotiating a similar joint venture with Damodar Valley Corporation for setting up a 2 X 800 MW capacity thermal plant at Kodarma, also in Jharkhand. “We will enter into a joint venture agreement with CIL in June,” the NTPC Chairman, Mr R.S. Sharma, said at a press conference jointly held with CIL here on Friday. Mr M.C. Jha, Director Technical, CIL, later told Business Line that the block having an estimated 1.1 billion tonne geological reserve of E and F grades of coal, having high ash content, had been awarded to the JV. “The detailed exploration of the reserve is yet to be completed. However, on the basis of an initial estimate, we are looking at developing open cast mines totalling not less than 15 million tonne annual production capacity,” he said. According to preliminary estimates, the mine development would cost approximately Rs 1,500 crore. As Mr Jha pointed out, the JV, though formed primarily to cater to the proposed 4,000 MW capacity plant, might also supply coal to NTPC’s units to meet their short or medium term requirements. “The aim of the JV is to produce power at the pit head. However, additional quantities, if available, may be equally shared by NTPC and CIL,” he said. Fuel supply pactThe CIL and NTPC top brass were in the city to sign the fuel supply agreement (FSA). According to the agreement, CIL would supply 115 million tonnes of coal to NTPC during this fiscal. The trigger level for attracting a penalty or bonus is set at 90 per cent of the assured quantity. “The agreement signed with NTPC will be used as a model agreement for entering into FSAs with other power utilities in the country,” the CIL chairman, Mr Partha S. Bhattacharyya, told newspersons. Meanwhile, NTPC is expecting to incorporate the 49:51 joint venture company with Nuclear Power Corporation (NPCIL) to foray into nuclear power by July. “We will sign the JV agreement with NPCIL in June and by July the company is expected to be in place,” the NTPC chairman said. Both the companies have already entered into a memorandum of understanding in this regard. NTPC exploring setting up of coastal projects in South NTPC forms overseas co for assets buy NTPC net jumps 58% in Q4 NTPC pact with SBI More Stories on : Alliances & Joint Ventures | Power | Mining & Quarrying | NTPC Ltd
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