ET reported that Neyveli Lignite Corporation has asked the government to allocate three coal blocks that were recently taken back from NTPC, potentially triggering a clash between the two ministries coal and power that control the state run firms.

The three blocks in Jharkhand Chatti-Bariatu, Chatti-Bariatu (South) and Kerandari hold 836 million tonnes reserves that can feed all the proposed coal based power projects of Neyveli Lignite.

If approved, allocation of the three blocks would facilitate Neyveli Lignite's foray into coal mining and coal based power generation but the power ministry has already asked the coal ministry to review de allocation of NTPC blocks and said if required would take up the issue with higher authorities.

Neyveli Lignite plans to set up two 2,000 MW power projects at Kanpur in Uttar Pradesh and Nagapattinam in Tamil Nadu. It also proposes to set up a 1,000 MW project at Tuticorin in Tamil Nadu.

(Sourced from ET)