NTPC's board of directors took a decision to this effect at its meeting on Friday, the company said in a filing to the Bombay Stock Exchange.
The mining project, located in Hazaribagh district of Jharkhand, is estimated to produce 15 million tonnes of coal a year, it said. The sanctioned investment of Rs 3,193.86 crore includes interest costs during construction, financing charges and working capital margins, the public sector undertaking said.
The company is scheduled to start production from the coal block, which was allotted to NTPC on October 11, 2004, in 2012. The public sector enterprise has already completed all formalities for implementation of the mining plan, including an action plan for rehabilitation of project-affected persons, it said.
Arrangements for power supply and notifications for land acquisitions under the CBA (Coal Bearing Areas) Act have been completed, it added. However, some activities -- such as payment disbursement for land and award of contract for setting up a power plant -- are in progress, it added.
Shares of the company closed at Rs 192.15 on the BSE today, down marginally from the previous close on the BSE.