NEW DELHI: Coal linkage to NTPC's proposed 1,980 MW North Karanpura power plant in Jharkhand has been restored but supply of the fuel will start in the next Plan period, Coal Ministry has informed dry fuel producer CILBSE -0.08 %.
"In pursuance of the Cabinet Committee on Investment (CCI) decision ... the coal linkage granted to North Karanpura Thermal Power plant of NTPCBSE -0.90 % in Jharkhand from CCL (Central Coalfields Ltd) ... is restored," the ministry said in a letter to Coal India LtdBSE -0.08 % (CIL), the parent company of CCL.
"... in principle with the stipulation that the coal supplies will commence during the 13th Five Year Plan," the letter added.
Government in February this year had decided against relocating the proposed project and had said that the plant would be provided necessary coal linkages.
The Coal Ministry in 2008 had withdrawn fuel linkages to the NTPC plant following a tiff with the power ministry over the location of the project.
NTPC plans to set up 1,980-MW power plant in the vicinity of Tandwa town in Chatra district of Jharkhand which would be its first project in the state.
The Coal Ministry had contended that the area has six billion tonnes of coal reserves underneath. It had stated in a Cabinet note that executing a power plant over the proposed site would pose threat to the environment.
A Group of Ministers on coal constituted a sub-committee in September 2011 under the chairmanship of Planning Commission member B K Chaturvedi to look into the issue.
Power Ministry had said that NTPC required restoration of original coal linkage to set up the power plant.
The project will be on a pit-head with environment friendly super-critical technology. The power will be generated by NTPC for about 35 years of plant life.
This is the first project of NTPC in Jharkhand which will benefit the state where about 26 per cent of the population is tribal, an official statement said.