Coal news and updates

MoC keeps tabs on progress of SPVs/JVs of end-users

April 30: The Ministry of Coal (MoC) informed through an official release that during the last review meeting held on February 20, 2014, it has been observed that some of the joint allocates are lagging behind in relation to the formation of special purpose vehicles/joint ventures among state government companies/corporations which had been allocated coal blocks for end-use and a meeting would be held to review their status on May 7.
It has been observed, that most of the end-user companies had given deadlines for setting up the entities but till date, not much has progressed with regard to the same.

For instance, the Kudanali-Luburi coal block had been jointly allocated to NTP and J&K State Power Development Corporation. A representative of NTPC had said that a draft on the formation of the joint venture had already been finalized and they would be able to form the JV by the end of March 2014, as the registration of the new company would take some time.

Regarding the Jirga Barpali block in Chhattisgarh, jointly allocated to NLC and CSPGCL, a representative had said the draft agreement for the formation of the JV had been approved by the boards of both companies and that they were likely to finalise the creation of the JV by February 28, 2014.

The Mahajanwadi coal block in Maharashtra had been jointly allocated to MAHAGENCO and GSECL. A representative of the latter had informed that a JV between both was already existing which would be authorized to develop this block. Thus, both companies were ready to sign the agreement with the government. The AS(C) requested him to send a formal communication in this regard.

UPRVUNL and HPGCL had informed that proposal for a JV had been submitted and a JV agreement would be finalized by March 1, 2014.

Other blocks in question include Gowa in Jharkhand allocated to JSMDC and BMDC, Kerwa in Chhattisgarh, allocated to CMDC and MPSMCL and the Deocha Pachami block in West Bengal allotted to six state government companies, where it was undecided whether the lead company in the JV would have 51% stake as per the Companies Act, 2013.