Indian coal ministry has cancelled the coal mine development and production agreement (CMDPA) of Tokisud North coal mine being allocated to Essar Power MP Ltd, following continued unsatisfactory progress made in the development of coal mine.
The mine was supposed to be operational within 3 months issuance of vesting order. But, several instances of deviation from achievement of set deadline had led to the termination of mining contract between the nominating authority and the successful bidder of the mine, Essar power.
It is to be mentioned that a scrutiny committee was constituted to examine the replies made by the successful bidder in respect of efficiency parameters. The committee noted that all applications for transfer of statutory clearance were to be made within 1 month of the vesting order.
However, the application for power line was submitted after due date. Besides, grant of mining lease and ground water clearance were also obtained after due date whereas Mine Opening Permission from COO, Permission from DGMS, Explosive License, Land Mutation and permission of power line from state utilities were still pending.
Non-compliance of efficiency parameters for more than 5 instances was considered as a termination event of the CMDPA. Accordingly, the committee had recommended to de-allocate the Tosikud North mine and forfeiture the performance security and other payments being made.
Tosikud North coal mine was allotted under the Coal Mine (Special Provision) Act, 2015. Under the said act, a total of 31 coal mines have been auctioned, out of which vesting order of 7 mines now stands cancelled.
Other 6 mines having their vesting order cancelled excluding Tosikud North are- Gare Palema IV-7, Mandla North, Mandla South, Majra, Mandakini and Utkal-C.
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