The issue of adequate coal supply for its existing and upcoming power plants has made NTPC worried. The power ministry, on behalf of the state-run firm, has taken up the matter with the coal ministry to work out a solution. The coal availability for NTPC?s power stations Farakka & Kahalgaon (stage-I) and for the upcoming expansion units at Kahalgaon, is posing a major obstacle in development and operation of these plants.

The expansion at Kahalgaon by (3×500 mw) under Stage-II was based on sanction of long-term linkage, along with commitment from Coal India Ltd/Eastern Coal Fields (CIL/ECL), for supplying adequate coal to match the requirement of about 27 million tonne per annum (mtpa) for Farakka (1,600 mw) and Kahalgaon Stage I&II (2,340 mw). According to ministry sources, CIL/ECL had planned to meet the above requirements by expansion of Rajmahal mines from 10 mtpa to 17.5 mtpa, development of new mines at Chuperbita (4.0 mtpa) and Hurra-C (3.0 mtpa) and balance of 3.0 mtpa from railway network of ECL/Mahanadi Coalfields Ltd (MCL) mines.

Sources said the main reasons for the coal shortage was largely due to significantly reduced production at Rajmahal mine, annulment of the ongoing tendering process for outsourcing the mine development of Rajmahal expansion from 10 mtpa to 17.5 mtpa which was initiated by ECL/CIL about 2 years ago, delays in government clearances for commencement of mine development work for the 2 designated mines namely Chuperbita (4.0 mtpa) and Hurra-C (3.0 mtpa) which was committed by CIL/ECL for production commencing 2007-08 to match with the Kahalgaon Stage-II (3×500 mw) schedule, inadequacy of railway infrastructure to undertake coal rake consignment in excess of 7.0 mtpa from ECL (non Rajmahal)/MCL/CCL/imported sources. The power ministry indicated that it appears highly unlikely that the rated production of Rajmahal expansion (17.0 mtpa), Chuperbita/Hurra-C (7.0 mtpa) are likely to commence before 2009-10 and 2010-11 respectively.