*NTPC may invest Rs 1,700 cr in Jharkhand coal mine*
Tuesday , January 22, 2008 at 2342 hrs

*State*-run NTPC, whose plan to commission its Pakri Barwadih coal mining
project by March 2008 has gone haywire due to delays in the completion of
necessary formalities by the Jharkhand government, plans to invest Rs 1,729
cr for development of the mine.

NTPC is weighing two options for development of the project. Whereas the
first option involves no outsourcing of infrastructural work and
productivity norms based on Indian standards, the second option involves
outsourcing of equipment via a mine development operator and productivity
based on international norms.

According to sources, the Pakri Barwadih site has geological reserves of 707
million tonne of which 594 million tonne are proven reserves.

The Rs 1,729-crore project would be financed through a debt equity ratio of
70:30 wherein the company plans to meet the debt requirement through
domestic commercial borrowings and bonds and the equity would be funded via
internal sources.

The grade of coal at the new project is 'F' and it is expected that its
delivered cost will total to a sum of Rs 762 per tonne. In case, if the coal
is upgraded to grade 'E' the cost would add up to a sum of Rs 922 per tonne.
Supplies from Pakri Barwadih would be used for emergency situations for
NTPC's projects in the northern, eastern and the National Capital Region.

financialexpress.com/news/NTPC-may-invest-Rs-1-700-cr-in-Jharkhand-coal-mine/264434/#

-- 
Jharkhand News
[EMAIL PROTECTED]
Jharkhand Online Network
http://www.jharkhand.org.uk

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