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Pakri-Barwadih Captive Coal Block of NTPC

13th May, 2014

M/s. Thiess Minecs India Pvt. Ltd. (TM) was appointed as Mine Developer-cum-Operator (MDO) on Global Tendering for development and operation of Pakri-Barwadih Captive Coal Block of NTPC on 30th. Nov. 2010 for a period of 27 years at an estimated contract value of Rs. 23,000 Crores. The contract consisted of development period of 360 days (ended on 25Nov.11) and balance operation stage.

TM failed to make any headway despite the fact that development period of the contract was extended twice ie. initially for 450 days and 360 days later. In toto, an opportunity of 1170 days was given for development phase. The above failure of TM was brought to the notice of Mr. Bruce Munro, MD, Thiess Pty. Ltd., Australia through emails on many occasions and got no response. NTPC, in this regard, issued a show-cause notice to TM on 10th. Jul. 2012, stating the defaults and non-fulfillment of contractual obligations by TM without any response.

The top management of NTPC called on the Australian Minister for Mining during his visit to India and was appraised about total inaction by M/s Thiess.

The persistent reviews of Ministry of Coal, Ministry of Power, Government of India, were also apprised to TM from time to time and TM has no improvement at field level. Meanwhile for this coal block, Ministry of Coal, GOI imposed a Bank Guarantee of Rs.138.6 crore at poor progress of scarce National Asset which is being contested by NTPC.

Other contractors have made good progress for construction of coal handling plant in the same area. Similarly, in North Karanpura area, close to project site, works are in progress with the cooperation of villagers. Indian Railways have almost completed Rail link.

Thus, NTPC had no option but to terminate the contract on 7th. May 2014 with a notice period of 45 days.

NTPC will like to inform that work at our second mine Chatti Bariatu is progressing at fast pace and the mining of coal is expected to commence this year.


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