Coal news and updates

Industry majors Jindal Steel and Power (JSPL), Essar Power, Tata Group and Reliance Infrastructure are learnt to have lost their captive coal blocks on Saturday, which are part of 19 mines recommended for cancelation by an inter-ministerial group (IMG).

The IMG, which has been tasked to recommend punitive actions against block holders idling on their allotted captive mines, after two days of deliberations on the fate of 61 identified blocks, finally zeroed in on 19 mines on Saturday and recommended cancellation.

The Indian Express had reported on Friday that the IMG is likely to cancel the allotment of a huge number of coal mines, allotted between 2005 and 2008. In case of other blocks, the panel may meet again to discuss the further course of action.

The Gare Palma IV/6 of JSPL, Rampia block in Orissa allocated jointly to Reliance Infrastructure, Lanco, Sterlite Energy, GMR Energy, Arcelor Mittal India and Navabharat Power is learnt to have been cancelled, and so has Essar Power’s Ashok Karkatta mine in Jharkhand.

The panel has also recommended cancellation of Radhikapur East block allocated to a consortium of companies led by Tata Sponge, the Moira Madhujore mine allotted to a consortium of six firms including steel maker Uttam Galva. The Madanpur North mine belonging to seven firms including Sunflag Iron and Steel would be cancelled and so too the Madanpur South Mine held by a consortium of six firms including Hindustan Zinc Limited.

The fate of the other blocks were not immediately known. The fate of the Mahan coal block allotted to Aditya Birla group company Hindalco with Essar Power and Tata Steel’s Kotre Basantpur, Pachmo and Ganeshpur blocks were to be decided on Saturday. The Jitpur and Utkal B1 mines allotted to JSPL were also on the list.

The details of these 61blocks have been furnished last month to the Supreme Court, which has been highly critical of the entire allocation process executed by the coal ministry through the erstwhile screening committee route. According to coal ministry officials, the companies have furnished whatever documents they had, but those were not enough to escape cancellation in most cases.   These blocks were cancelled on account of either the environmental clearances not being in place or where the states had not executed the mining leases.

 

Source: http://indianexpress.com/