ntpc coal jharkhand mines india cil coal india share price net profit reserves billion exploration power energy
Locals collect coal from the dump site of an open coal field at Dhanbad district in the eastern Indian state of Jharkhand September 19, 2012 (representational image).Reuters file

State-run power generating company NTPC said on Wednesday that it has struck coal at the Pakri Barwadih mines in Jharkhand. 

The listed entity said it has "successfully exposed seam-III in its first coal mine-Pakri Barwadih ...after removal of over burden of 7 lakh cubic metre."

The next steps will begin in due course, said NTPC whose share price closed at Rs 163 on the BSE.

"Coal production will commence shortly from this mine and can be supplied to any project of the company. This is a major step towards building assured fuel supply for the company," it said in a statement.

The Indian government has  allocated 10 mines with estimated reserves of 7.3 billion tonnes that have a mining capacity of about 107 million tonnes per annum, the statement added.

For the second quarter (Q2) ended September 2016, NTPC's net profit and sales stood at Rs 2,495 crore and Rs 19,398 crore, respectively.

The government of India holds 69.74 percent stake in the company's equity. NTPC has about 22,500 employees and 44 power stations.

Originally a thermal power company, NTPC has forayed into solar and hydro energy in a big way.

Coal India Limited (CIL) is India's and also the world's largest coal-mining companies, with about 400 mines in operation 176 are open cast, 30 mixed and about 200 underground. The CIL share price closed at Rs 305 on the BSE on Wednesday.

The country's coal import bill fell sharply during the financial year 2015-16.

"Record coal production by CIL leads to a reduction in import by 34.26 million tonnes (MT). Results in a saving of Rs 28,070 crore in foreign exchange during 2015-16," tweeted Coal Secretary Anil Swarup on April 6, 2016.

The company meets about 81 percent of India's coal requirement from its 430 mines, of which 227 are underground, 175 open-cast and 28 mixed ones. It has eight subsidiaries.

The Indian government has planned to double the coal output to one billion tonnes by 2019-2020.

India's coal reserves were estimated at about 301.56 billion tonnes by the Geological Survey of India in April 2014.

The reserves were predominantly in Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra, CIL declared in its annual report for the year 2014-2015.

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