Coal news and updates

Coal ministry on de-allocation spree

February 18: The Ministry of Coal, acting on the recommendation of the Inter-Ministerial Group, has further cancelled the coal blocks allocated to Adani Power, AES Chhattisgarh Energy Limited, Bankura DRI Mining Manufacturing Co, Mideast Integrated Steels and Kamal Sponge Steel & Power Limited.

Furthermore, the ministry de-allocated two coal blocks, Ramchandi Promotional (coal to liquid) block in Odisha, allocated to Jindal Steel & Power (JSPL) and North Arkhapal Srirampur (coal to liquid), allotted to Strategic Energy Technology Systems Limited (SETSL).

With the endorsement of the IMG's recommendations, the number of blocks de-allocated stand at 8.

The Moira Madhujore block allotted to Ramswarup Lohh Udyog, Adhunik Corporation, Uttam Galva, Howrah Gases, Vikash Metals & Power and ACC Cement, Radhikapur West block given to Rungta Mines, OCL India and Ocean Ispat, and the Bundu block allotted to Rungta Mines too met with the same fate.

All these are part of the 61 captive blocks allocated to private companies after 2005.

"The recommendations of the IMG have been considered and accepted by the competent authority. The coal block allocated to your company is de-allocated forthwith. Your company shall not be eligible for allocation of coal blocks in lieu of the de-allocated block," the ministry informed each block allottee.

With the CTL blocks, the ministry told each company (JSPL and SETSL) that apart from the de-allocation, there will be deduction of bank guarantee linked to the milestones set for development of the block as per the allocation letter.