The government has decided to allot three of the five de-allocated coal blocks to state-owned power giant NTPC, apparently to boost the company's value ahead of disinvestment of a part of the government's stake.

In June 2011, the government had de-allocated five of NTPC's eight coal block as a punishment for its slow progress in development of the coal blocks.

But, the coal ministry yesterday announced that NTPC would be re-allocated three of the five de-allocated coal blocks, viz. Chatti-Bariatu, Chatti-Bariatu (South) and Kerandari coal blocks.

Announcing the re-allocation of three blocks to NTPC, the coal ministry said, "The decision to de-allocate has been withdrawn and the three coal blocks stand restored to NTPC."

Jointly, the three re-allocated coal blocks have reserves of an estimated of around 850 million tonnes and have the capacity to produce 13 million tonnes annually. The other two blocks that NTPC lost in June 2011 but did not get back yesterday are the Chichiro Patsima and the Brahmani coal blocks.

NTPC currently requires around 160 million tonnes of coal per annum, of which it imports nearly 16 million tones via tenders.

The government owns 84.5 per cent stake in NTPC and has plans to offload 9.5 per cent to private investors to pocket an estimated of Rs 13,000 crore. The stake sale is scheduled to take place in February.