Coal news and updates

MoC de-allocates JSPL-Monnet Ispat’s Urtan North block

December 18: In a crackdown, the government has announced the deduction and encashment of proportionate amount of bank guarantee (BG) and de-allocation of the Urtan North coal block given to Jindal Steel & Power (JSPL) and Monnet Ispat & Energy.

The Inter-Ministerial Group (IMG), after considering the terms and conditions for allocations, the show-cause notice issued, reply of the block allocatee to the show-cause notice, status report of the Coal Controller’s Office (CCO) etc, announced the de-allocation and encashment of the proportionate bank guarantee linked to the milestones set for the development of the block, informed an official release.

The IMG suggested that, as per the CCO’s report, the geological reserves (GR) had been purchased, BG submitted, mining plan approval obtained. However, there were delays in achieving milestones.

The joint venture had stated in the show cause reply that it had received the geological reserves (GR) from CMPDIL only after 11 months which contributed to the delay in submission of the mining plan. It had further stated that the plan was submitted on October 27, 2011 and has not yet been approved. Nor has the state government forwarded the mining lease application to the central government. The EMP clearance is delayed due to the pending of the approval of the mining plan and mine closure plan.

The IMG, on its part, taking into account the facts placed before it, including that while the GR had been purchased, BG submitted and the mining plan approval obtained, the environmental clearance, land acquisition, grant of previous approval of mining lease are still pending and it has recommended de-allocation of the block concerned.

Further, the proposal has been approved by the government and the two companies shall not be eligible for allocation of any block in lieu of the de-allocation.