Govt decides to cancel two more coal blocks

Updated on : 24-02-2014 08:20 AM

The Centre has decided to cancel two more coal blocks, taking the total number of mines deallocated for not being developed on time to 28 so far.

The cancellation of these mines in Jharkhand come in the backdrop of an inter-ministerial group (IMG) recommending deallocation of a number of coal blocks allocated to various firms.  “The IMG recommends deallocation of block (Chitarpur coal block in Jharkhand…The recommendations of IMG have been considered and accepted by the competent authority on 11th February 2014.  However, further action is put on hold in view of the interim order of High Court of Jharkhand,” the Coal Ministry said in a letter to Corporate Ispat Alloys Ltd.  In another letter to the chairman and managing director of Rungta Mines and Kohinoor Steel Ltd said, “IMG recommends deallocation of the block.  The recommendations of IMG have been considered and accepted by the competent authority…further action in respect of Mednirai coal block (in Jharkhand) is put on hold.” Mednirai coal block was jointly allocated to Rungta Mines and Kohinoor Steel(P) Ltd in 2009.  The IMG had earlier this month reviewed the progress of 61 coal blocks.  The Coal Ministry had on Wednesday decided to deallocate two coal blocks in Jharkhand allocated to Essar Power Ltd. Some of the coal blocks which have been deallocated since Monday include 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 Ltd.  While in some cases the coal blocks have been “deallocated forthwith”, in other cases “the action is put of hold, ” the coal ministry official said.