New Delhi :  The Coal Ministry has decided to deallocate 28 coal blocks of companies, including JSPL, Areclor Mittal and Sterlite Energy, for delays in developing the mines alloted to them for captive use. The development follows the the recommendations of the inter-ministerial group (IMG) which suggested the deallocation of mines.

The coal ministry has also decided to de-allocate two coal blocks of Essar Power Ltd for delay in meeting development-related milestones, but put on hold any further action in view of pending court proceedings. The ministry has issued de-allocation letters for the Ashok Karkata Central and Chakla coal blocks in Jharkhand.

The coal ministry had asked private companies with allocated coal blocks to furnish details on stage-1 forest and environmental clearances, failing which the block would be de-allocated.

“The recommendations of the IMG has been accepted by the government and coal blocks would be deallocated,” according to a Coal Ministry official. The move comes in the wake of the panel on coal blocks, reviewing the progress of development of 61 coal blocks.

Some of the blocks that have been deallocated includes Lohara West and Lohara Ext (E) mine alloted to Adani Power and Madhujore mine jointly allocated to Ramswarup Lohh Udyog, Adhunik Corporation, Uttam Galva Steels, Howrah Gases, Vikas Metals and Power Ltd, ACC Cement.

Some of blocks where further action has been put on hold due to cases pending in the court are Palma IV/6 coal block allocated to Jindal Steel and Power Ltd and Nalwa Sponge Iron Ltd, Rampia and Dip side of Rampia coal block allocated to firms like Arecelor Mittal, Sterlite Energy, Lanco and GMR Energy, Rajgamar Dipside (South of Pulakdih Nala) coal block jointly alloted to Monnet Ispat and Energy Ltd among others.

Meanwhile, Jindal Steel and Power Ltd (JSPL) intends to appeal in court against the government decision to de-allocate the coal block allocated to it, a company source said.

A JSPL spokesperson earlier said the company sees “no reason” behind the de-allocation as environment clearance for the coal block in Chhattisgarh was given on Feb 10.

By praful

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