Coal news and updates

IMG probing sale of coal by JSPL to submit report in 2 months

The inter-ministerial panel probing allegations of Jindal Steel and Power Ltd (JSPL) selling coal to third parties from mines allocated to it captive use, will submit its report within two months.

The company denied diverting coal from captive mines. The three-member committee, under the chairmanship of Coal Advisor, was formed last week. Other members of the panel are coal controller and a representative from the Steel Ministry, a top Coal Ministry official said.

"The Committee probing complaints with regard to alleged sale of coal by JSPL from its captive mines in Chhattisgarh will submit its report to the coal ministry in two months," the official said.

When contacted, JSPL, Director, External Affairs Manu Kapoor in an email said, "The coal from all our captive mines are used in respective end use plants. There is no diversion of any coal from any mine whatsoever. The allegations are completely baseless."

JSPL was allocated Gare Palma IV/1 coal block in Hasdeo-Arand coalfields in Chhattisgarh having geological reserves of 124 million tonnes (MT) for meeting the requirement of its sponge iron plant in 1996.

The Coal Ministry had also alloted the company Gare Palma IV/6 mine in Mand Raigarh coalfields in Chhattisgarh. The mine, which has a geological reserves of 156 MT, was given to the company for sponge iron plant in 2006.

Earlier, the Coal Ministry had also asked Power Ministry to probe alleged "violation" of captive coal block allocation norms by JSPL through selling surplus power generated by leftover coal from its mine in Chhattisgarh to others.

"... the washed coal is used in the manufacture of DRI (Direct-reduced iron) and the leftover coal in the form of middlings are used in generation of power in its (JSPL) captive power plant and surplus power is sold to others, which is violation of captive clause," the Coal Ministry had said.

The Coal Ministry, in a letter to Power Ministry, had requested it to "examine the matter in detail and furnish the comments". When contacted, a JSPL spokesperson had said, "Surplus power has been sold as policy of Government of India and State Government."

Stating that the company has not received any notice from the Coal Ministry in this regard, the spokesperson said: "However it may be mentioned that we are operating Captive Power Plant at Raigarh based on Coal middlings / rejects of our coal washery and hot gases generated during process of manufacture of sponge iron and hot metal. Washed coal from the Coal washery is used for making Sponge Iron."

Source: The Economic Times