Nine companies, including NTPC, will lose coal blocks they failed to develop on time while 15 others will have to forgo bank guarantees for not starting production. The coal ministry decided to revoke licenses of 15 coal and lignite blocks, the first time it will repossess so many blocks in one go. The government plans to give all the coal blocks to Coal India Ltd for early development. The ministry has also warned owners of another 29 coal and three lignite blocks to commence production on time. However, no action will be taken against 20 coal blocks falling in the no-go area.
The move comes as a major setback to NTPC, the country’s largest power generator, as it loses five blocks on which it had invested Rs 500 crore so far. It will now have only three coal blocks for captive use. Until now, the government had cancelled licences for 10 blocks, that too over a period of time. Of the 14 coal blocks, 12 were awarded to state-run companies under government dispensation route. The decision is based on recommendations made by a review committee in March this year.
Ministry guidelines say an opencast mine should become operational within 36 months of award and underground mines in 48 months. An additional six months is allowed if the block is in a forest. Coal ministry data show that NTPC’s five blocks—Chatti Bariatu, Kerandari, Brahmani, Chichiro Patsimal and Chatti Bariatu (South) —hold over 3 billion tonnes of reserves. The ministry is of the view that most of the blocks were awarded in 2006 and at least three of them should have begun production in 2009.
The move comes as a major setback to NTPC, the country’s largest power generator, as it loses five blocks on which it had invested Rs 500 crore so far. It will now have only three coal blocks for captive use. Until now, the government had cancelled licences for 10 blocks, that too over a period of time. Of the 14 coal blocks, 12 were awarded to state-run companies under government dispensation route. The decision is based on recommendations made by a review committee in March this year.
Ministry guidelines say an opencast mine should become operational within 36 months of award and underground mines in 48 months. An additional six months is allowed if the block is in a forest. Coal ministry data show that NTPC’s five blocks—Chatti Bariatu, Kerandari, Brahmani, Chichiro Patsimal and Chatti Bariatu (South) —hold over 3 billion tonnes of reserves. The ministry is of the view that most of the blocks were awarded in 2006 and at least three of them should have begun production in 2009.
| Company Name | CMP |
|---|---|
| NTPC | 333.30 |
| Tata Power | 401.25 |
| Power Grid Corp | 315.75 |
| Adani Power | 498.45 |
| Torrent Power | 1476.80 |
| View more.. | |
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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