Coal news and updates

Notices served on 9 firms for coal block development failure

The coal ministry on Monday served show-cause notices to Reliance Power, Essar and Hindalco for failing to develop the Chhatrasal and Mahan coal blocks in a time-bound manner.

In show-cause notices served to nine companies including Essar Power and Hindalco Industries for Mahan block and Sasan Power Limited for Chhatrasal block (allotted in 2006) in Madhya Pradesh, the ministry has asked them to explain the delay in developing their respective blocks within 20 days failing which they may be canceled.

Sasan power project is an ultra-mega power project with an installed capacity of 4000 MW. The first unit has started producing power on March 30 while the second unit started on December 13. The company's overall generation capacity has crossed 3,200 MW.

Reliance Power is executing three UMPPs in Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand). It has been allocated Moher, Moher Amlori and Chhatrasal blocks.

Both the blocks had been the part of No-Go areas as categorised by the environment ministry under Jairam Ramesh which was dismantled last year by a group of ministers. But the coal ministry's inter-ministerial panel believes that despite abolishing the system, both the firms failed to meet the stipulated milestones.

There are reports that the CBI is planning to file closure reports on allocation of mines to Sasan Power, but the coal ministry has cited reasons to justify the show-cause notices.

"We cannot have different yardsticks for separate companies. If there is a case for delay in development of the mines for reasons within their control, then it merits a serious view. The companies have told us that the blocks were part of no-go areas, which is true. But it is more than a year that the said system has been dismantled. Then why have they not developed them?" a senior coal ministry official said.

Power Point

* The ministry has asked them to explain the delay in developing their blocks within 20 days failing which they may be canceled

* Among those served notices are Essar Power and Hindalco Industries for Mahan block and Sasan Power for Chhatrasal block

* Reliance Power is executing three UMPPs and has been allocated Moher, Moher Amlori and Chhatrasal blocks

Source: The Indian Express