Govt asks firms for status of coal blocks

A committee,headed by additional coal secretary,had on January this year directed the coal ministry to asked companies who were allotted coal blocks to adhere to the production deadline.

A consortium of companies comprising JLD Yavatmal Energy,RKM Powergen,Vandana Vidyut,Visa Power and Green Infrastructure has also been asked to provide the status of the Fatehpur (East) block jointly allocated to them in January 1,2008.

In September 2009,the committee had warned the five companies on the inadequate efforts made by them to develop the blocks and had accordingly sent them show-cause notice.

The move by the coal ministry follows a recent report by the Comptroller and Auditor General of India (CAG) that says private companies benefitted Rs 1.86 lakh crore from the allocation of coal blocks,distributed without being auctioned. But the government argues that since out of 57 allocated,only one block is functioning there cannot be any loss as the fuel is yet to be mined.

Coal minister Sriprakash Jaiswal has said that CBI is on track to identify any case where either the screening committee could have been misled or facts were concealed and errant block owners would be punished.

National Mineral Development Corporation has also been asked to furnish the progress record of two blocks,Sahapur (East) and Sahapur (West),allocated to the company in July 2007. Similarly,state-run NTPC has been asked to furnish the updated record for its Pakri Barwadih coal block in Jharkhand for which land acquisition is still pending.

While it was allocated the block in October 2004,the company has failed to commence coal production from the mine by the stipulated April 2008.

Other companies such as GVK Power may have to explain the delay in developing the Tokisud North allocated to the company in January 2002,which was slated to begin production by July 2005. A source in the ministry said the company’s number of milestones are pending.

Naveen Jindal-promoted Jindal Steel and Power would have to explain the delays associated in developing the company’s Utkal B1 block in Orissa and so will Bhushan Steel and Power for the Jamkhani allocated to it in November 2003. Forest clearance,mining lease and land acquisition are reportedly pending,the source said.

Other firms,which have been asked to explain the status of their blocks are Madhya Pradesh State Mining Corporation (Bicharpur block),Tenughat Vidyut Nigam Limited and Damodar Valley Corporation (Gondulpara) and Prism Cement Limited.