Coal news and updates

Ministry de-allocates lignite block of Rajasthan State Mines

December 18: The Ministry of Coal (MoC), through an official release, has announced the de-allocation of the Mokhala Lignite block allocated to Rajasthan State Mines And Minerals Limited (RSMML).

The Inter-Ministerial Group (which had been set up with the mandate to review the progress of development of allocated coal/lignite blocks and the associated end-use projects and recommend de-allocation in instances where required), the release said, has taken into account the fact that there was no substantial progress in the development of the Mokhala lignite block even after the issue of a show-cause notice on May 4, 2012.

The panel has also taken into consideration that the geological area of the block had increased substantially compared to the area mentioned in the allocation letter.

The panel further observed that it was necessary on the part of the allocatee company and the government of Rajasthan to inform the Government of India about such an increase in the geological area for taking a view on the matter.

Taking all points into consideration, the IMG has thus recommended that the block be de-allocated.

The IMG has further recommended “that de-novo (starting anew) process for allocation of this block after revising the area/co-ordinates could be considered. If the block, after redefining of boundaries, is considered for allocation of government companies, RSMML may apply for the same” under the Mines & Minerals (Development & Regulation) (MMDR) Act.

The block had been allocated to the state PSU in July 2003.