New Delhi: In a major blow to the National Thermal Power Corporation (NTPC), the Union Coal Ministry on Friday cancelled two coal blocks, one each in Jharkhand and Orissa, allotted to the power major in 2006.

The whip of cancelling the two coal blocks comes just a day after three coal blocks of NTPC were cancelled on Thursday.
The decision has been taken because NTPC failed to develop the coal blocks even after five years of its allotment.

Coal Ministry spokesperson said, “NTPC was not serious about developing the coal blocks. So allotment of Brahmini (Jharkhand) and Chichro Patsimal (Orissa) coal blocks has been cancelled.”

Both Brahimini and Chichro Patsimal coal blocks were allocated to NTPC in 2006.

In 2009, an agreement was signed between NTPC and Coal India to form a joint venture company (JVC) to develop these mines in order to meet the coal requirement of Farakka and Kahalgaon thermal power plants of NTPC.

“The joint venture agreement was signed in October, 2009, but the JVC has not yet been finalized," the Coal Ministry spokesperson said.

Meanwhile, the NTPC has refused to comment on the development saying the onus of developing these blocks was on Coal India.

Last month, Coal Ministry had announced its decision to cancel allotment of 14 coal blocks, including five of NTPC.

The three coal blocks of NTPC cancelled in Jharkhand on Thursday include Chhati Bariatu (South), Chatti Bariatu and Keradari.

(JPN/ Bureau)