Coal news and updates

SC coal block decision worries Chhattisgarh power plants

Threat of closure looms large over many coal blocks in Raigarh district of Chhattisgarh with Supreme Court declaring coal block allocations from 1993 illegal and arbitrary. A dozen out of 20 coal blocks here were allotted since 1993 and eight of them are already operational — catering to the coal needs of state's power plants.

Local industrialists say that in the event of closure of these mines, which supply coal to a string of plants, power supply of about 9000 megawatt may be affected while investments up to Rs 2 lakh crore would be at risk and could trigger fluctuations in state's GDP.

Jindal Steel and Power Limited (JSPL) is the first private company to get allocation for captive coal mines Donga Mahua in Tamnar. Later, numerous companies got coal blocks mainly at Tamnar and Gharghod. Industrial sector feels that state's coal-based power plants could run the risk of closure in the event of cancellation of coal blocks.

Steel and Power Limited (JSPL) is the first private company to get allocation for captive coal mines Donga Mahua in Tamnar. Later, numerous companies got coal blocks mainly at Tamnar and Gharghod. Industrial sector feel that state's coal based power plants could run risk of closure in the event of cancellation of coal blocks.

Though the apex court had declared coal block allocation since 1993-2010 illegal, Supreme Court is due to decide on September whether to cancel the allocations, or to impose some sort of penalty on them.

Indications are that nine power companies, which got coal block allocation since 1993, and either stated its operations or about to start operations after signing memorandum of understanding (MOU) with the state government could be affected. Since power plants generate direct and indirect employment in the region, locals are also worried about their livelihood.

When contacted, officials of major power companies said they were not in a position to offer comments as the matter was under consideration of Supreme Court.

Coal blocks allocated to companies from 1993 in Raigarh district

JSPL captive coal mines at Donha & Mahua

Monnet coal mines at Milupara
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Jayalwal's Neco coal mines at Banjhinkhol

Raipur Alloys at Tamnar

JPAL at Gare & Pelma

SECL at Chaal, Barod, Jampali

NTPC coal mines at Tilaipali

Source: The Times of India