Coal news and updates

Calcutta High Court today paved the way for mining in two coal blocks, unlocking 7 million tonnes of fossil fuel every year for the generation of electricity by the state-run West Bengal Power Development Corporation Ltd (WBPDCL).

A division bench of Justices Nishita Mahtre and Rakesh Tiwari vacated the stay imposed by a single-judge bench of the same court, allowing WBPDCL to select a new developer and operator for the Panchwara (North) mine in Birbhum and the Barjora (North) mine in Bankura.

Justice I.P. Mukerji had stayed the tender process following a petition by Emta Coal Ltd, whose group firm Bengal Emta Coal Ltd had been operating the two mines before the Supreme Court struck down the allocation of 218 coal blocks across India. Last year, the Centre re-allocated the two mines to the WBPDCL.

Emta, co-owned by Ujjwal Upadhyay, had complained that the WBPDCL had not followed Section 11 of the Coal Mines (Special Provisions) Act, 2015, which relates to the discontinuance and awarding of mining contracts after the de-allocation of blocks.

Emta had alleged in court that the WBPDCL had the scope of retaining the services of the company but did not do so. It had also alleged that the power utility did not inform it in keeping with the provisions laid down under Section 11 while floating a new tender.

Justice Mukerji had issued orders restraining the WBPDCL from going ahead with the tender process and lifting coal from the Panchwara (North) and Barjora (North) blocks.

"We can save at least Rs 1,000 per tonne by using coal from (the two) captive mines rather than buying from Coal India. After today's order, we hope to award the contract soon and operationalise the mines," a WBPDCL official said.

The WBPDCL had floated two tenders on October 5 and October 17, seeking applications for the development of the two mines.

Bengal Emta Coal Ltd, which was the developer and operator of the two blocks, had taken part in the tender process and attended the first meeting with bidders.

"But Emta's tender for Panchwara (North) was cancelled on technical grounds. Emta then moved the high court, seeking an order asking the Centre and the WBPDCL to grant it the job of developing and mining at the two blocks as it had the experience," said Debanjan Mandal, a partner in Fox and Mandal and solicitor of the WBPDCL.

When the case was being heard by Justice Mukerji, Emta had failed to bag the tender related to the Barjora (North) mine as another firm had quoted a lower price.

In December, Justice Mukerji had issued his first order asking the WBPDCL chairman to consider Emta's case and restrained the power utility from proceeding with the tender process without the permission of the court.

The WBPDCL chairman had considered the issue and dismissed Emta's prayer.

When Emta again moved Justice Mukerji's court and informed the judge about the WBPDCL's decision, he issued another order on January 10 asking the power utility chairman to reconsider the matter.

The WBPDCL then moved the division bench.

Source: Telegraph India