Coal news and updates

MoC de-allocates four more coal blocks

January 8: The Ministry of Coal (MoC) has de-allocated four coal blocks allotted to end-users for captive mining. These include Khappa & Extn. coal block allocated to Sunflag Iron & Steel and Dalmia Cement (Bharat), Warora coal block allocated to Maharashtra State Mining Corporation, Bikram coal block awarded to Birla Corporation Ltd and deduction of 50% of the bank guarantee and the Majra coal block allocated to Gondwana Ispat.

The Majra block had been allocated for meeting the 4.8 lakh tons per annum (ltpa) of captive coal for the 1.20 ltpa sponge iron plant. One of the conditions for the allocation was that the block should have commenced production by April 2007 and full-rated capacity production by October 2009.

For Bikram and Khapa Extn blocks, one of the conditions was that production should have started within 36 months (42 months in case the area was in forest land) for an open cast mine, and in 48 months (54 months in case the area fell within forest land) if it was an UG mine, from the date of preparation of the geological reserves (GR).

Where Warora was concerned, the MoC said, one of the terms was that in case of an unexplored block, the allocatee company had to apply for a prospecting licence within three months of the date of allocation.

After detailed deliberations, which included consideration of the terms and conditions of allocation, the show-cause notice issued, reply of the block allocate to the show-cause notice, status report of the CCO, presentation made by the allocate etc, the IMG recommended de-allocation of all four blocks.