State-owned NTPC would form a 50:50 joint venture with Coal India Ltd to develop coal mines for its Farakka and Kahalgaon thermal power projects.
“A joint venture agreement has been signed between NTPC and Coal India for incorporation of the joint venture company with equal equity participation for development of Brahmini and Chichro Patsimal coal blocks,” the company on Wednesday informed the Bombay Stock Exchange.
The coal from these mines would be supplied to Farakka (West Bengal) and Kahalgaon (Bihar) expansion projects of the company, it said.
After meeting the coal requirements of NTPC, the proposed JV company will consider building a thermal power plant.
“This JV company would develop the coal blocks for NTPC’s power projects and if any surplus coal is available at the location, it (JV company) may utilise it for building a thermal power plant,” sources said.