Coal news and updates

Centre turns down plea to reconsider decision on 2 blocks

The Ministry of Coal has turned down the state government’s request for reconsideration of its decision to cancel two coal blocks allotted in the state for two coal to liquid (CTL) projects.

Accepting the recommendations of the inter-ministerial group (IMG), the Coal Ministry de-allocated two coal blocks allotted to Jindal Steel and Power Limited (JSPL) and Strategic Energy Technology Systems (SETSPL).

“The IMG felt that no new facts were brought to light by the State Government warranting reconsideration of its earlier recommendation given in respect of these two CTL blocks,” stated the Ministry of Coal in its de-allocation order.

Stating that the recommendation of the IMG has been accepted by the Government, the Ministry said the two companies have failed to develop the coal blocks and the CTL projects as per the milestones prescribed despite being given a number of opportunities to do so. The companies also did not give any valid reasons for the delay.

With regard to Ramchandi promotional CTL block, the IMG said the company only submitted bank guarantee (BG) without taking any clearance. Even after four and a half years, the developer was unable to procure even the prospecting licence (PL), the first step towards coal mine development.

Similar is the case of North of Arkhapal-Srirampur coal block allotted to Strategic Energy Technology Systems (SETSPL), a joint venture between a consortium of Tata Group of companies and South African energy major Sasol.

It has been decided to de-allocate the two coal blocks and the two companies will not be eligible for allocation of coal blocks.

The Ministry has also ordered for renewal of the bank guarantee of ` 103.93 crore given by JSPL.

The 23rd meeting of the IMG held in October last year had also recommended cancellation of the two coal blocks after finding that the two companies had not prepared the geological report or obtained any clearance from the Government.

Source: The New Indian Express