Coal news and updates

MoC warns HINDALCO, Tata Power over Tubed block

January 14: The Ministry of Coal (MoC) has sent a warning for inordinate delay over the development of Tubed coal block in Jharkhand to HINDALCO Industries and Tata Power and recommended deduction of their bank guarantee (BG), as revealed by an official release.

The Inter-Ministerial Group (IMG) set up by the Ministry for monitoring the development of captive coal blocks, has recommended that the bank guarantee (BG) may be deducted as per the terms and conditions of the allocation letter and the allocates directed to develop the block without any delay.

According to the release, the Inter-Ministerial Group (IMG) noted that five years have lapsed from the date of allotment, ie, August 1, 2007. The IMG further noted that the company had purchased the geological reserves (GR) and had got the mining plan approved. The environmental clearance had been obtained while forest clearance was at Stage I.

The companies had alleged that further action for acquisition was held up, pending the decision on the show-cause notice. Both the end-use plants of Tata Power and HINDALCO were at the land acquisition stage.

However, the IMG noted that the state government had not made any reference in this regard.

The IMG further reminded that the company had said the mine would be opened up in the second half of 2013.

Taking into all factors, including the fact that the block had been put on hold for some time by the orders of the court and MoC, it did not want to recommend de-allocation at this stage.