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Coal ministry has defeated every sense of logic: Monnet Ispat CMD

Monnet Ispat & Energy has alleged breach of trust by the coal ministry that last week cancelled the company's Rajgamar Dipside and Urtan North coal blocks for slow progress. In an exclusive interview with ET, Monnet Ispat CMD Sandeep Jajodia says fear psychosis has set in within the government resulting into 'illogical' decision-making and non-co-operation towards industrialists. Edited excerpts:

Why do you blame the coal ministry for de-allocating the company's blocks when the progress was slow?

The coal ministry has defeated every sense of logic and has breached our trust. We were given a block Rajgamar Dipside in June 2009 for setting up a sponge iron and steel plant in Raigarh. Till late 2010, we were not given the geological report by CMPDIL, the coal ministry's technical arm. How are we supposed to achieve the milestones? Coal mines were given to companies that committed the much-needed investment in the  sectors of power, steel and cement. You cannot give coal mine to somebody, push him over the years and when thousands of crores have been invested in the end use project, cancel the mine for reason beyond the control of the allottee company.

What are the obstacles that you faced in development of the blocks and what is the status of the end use plants?

The surface area of the Rajgamar mine has been acquired by the South Eastern Coalfields (SECL) under Coal Bearing Act and till they relinquish the land we cannot even apply for land. We wrote several letters, held meetings with that company and complained to the ministry several times. The coal ministry itself has written to SECL to clear the land at the earliest.

The conditions of allotment clearly says that in case there is overlapping of coal block with a government company, any delay beyond 2 months in transferring the land to allocatee company can be claimed as grace period. Even our zero date has not started, so where is the question of us defaulting in meeting the deadlines? By deallocating our block the coal ministry is grossly in violation of its own conditions.

Do you agree with the ministry's argument that developing captive coal blocks is an absolute responsibility of the companies?

The ministry has no teeth. It cannot even direct its own companies like CILBSE 1.41 % or the SECL leave aside questioning another ministry or the state government. If the ministry in various review meetings has not been able to influence and help the allottee companies in securing the clearances in time, what right do they have to cancel the allocation? If the administrative ministry is not able to get it done, what is a private allottee company supposed to do. Who will pay the loans taken by these companies that have in good faith invested thousands of crores.


Source: The Economic Times