Coal news and updates

Coal ministry slaps notices on five power companies

The coal ministry has issued show cause notices to five power companies -joint allottees of Fatehpur East Coal Block near Dharamjaigarh in Raigarh district of Chhattisgarh - asking them to explain why the block should not be de-allocated due to delay in development of the project.

Fatehpur East Coal Block was jointly allocated to L D Yavatmal Energy Limited, R K M Powergen Private Limited, Visa Power Limited, Green Infrastructure Private Limited and Vandana Vidyut Limited in January 2008.

The show cause notices, issued by the ministry earlier this month, stated that prospecting and exploration work was to be completed within 27 months from the date of allocation. As per the allocation letter, coal production from the captive block was to commence within 36 months and 42 months in case the area is in forest land. The notices said the allocation letter also stipulated that the allocation or mining lease of the coal block may be cancelled on the grounds of unsatisfactory progress of implementation of their specified end use plants and unsatisfactory progress in the development of coal mining project.

The notices said the inter-ministerial group (IMG), set up by the government to review the progress of development of allocated coal blocks and associated end use projects, had noted that the progress of the block was unsatisfactory as a number of important/critical milestones are pending. Hence, the IMG recommended issuing the show cause.

The companies concerned have been asked to furnish a detailed status note on the progress of end use plants for which the Fatehpur East Coal Block was allocated.

Meanwhile, environmental activists in Dharamjaigarh region are protesting against Friday's scheduled public hearing for environmental clearance of Fatehpur East Coal Block. They said on the one hand, the coal ministry is issuing notices while a public hearing is being organized to take the project forward.

Source: The Times of India