India: Industry Leaders may lose Coal Blocks

Tata, JSPL, Birla and many more may lose their captive Coal blocks owing to the irregularity and delays in development found by the ministry.

Private companies sitting over 4.5 Billion tonnes (BnT) reserves in states like Chhattisgarh, Odisha, Jharkhand, Madhya Pradesh and Maharashtra may lose their captive Coals blocks as it is urged by an inter-ministerial panel to cancel the licenses of 11 mines.

Companies who may lose their blocks are Tata Sons, Jindal Steel & Power, Birla Corporation, Monnet Ispat & Energy, Rungta Mines, Dalmia Cement, Sunflag Iron & Steel, Topworth Steel and Maharashtra State Mining Corp.

“The panel has recommended de-allocating three coal blocks of Jindal Steel & Power and two Coal blocks of Monnet Ispat for unsatisfactory progress. Two big blocks allocated to Jindal Steel & Power and Tata Sons for country’s pilot Coal-to-Liquid (CTL) projects are also proposed to be de-allocated since the companies have not done any work on the blocks”, a senior official in the coal ministry said to media.

Strategic Energy Technology Systems — a consortium of Tata Sons and Sasol Synfuels International (Proprietary) of South Africa — was awarded North of Arkhapal block for CTL project. Jindal Steel & Power was awarded Ramchandi Promotional block for another such project. Each project entails an investment of about INR 450 billion.

The panel made its recommendations after it reviewed 30 blocks and heard the companies’ explanations for delayed development.

“During their presentations most companies blamed the central and state authorities for non-cooperation. However, we are in favor of cancelling the licenses, as under the law companies are solely responsible for developing the blocks,” the official said to media.

Official added, “Other companies that are set to lose mines are Rungta Mines, Dalmia Cement, Sunflag Iron & Steel, Topworth Steel and Maharashtra State Mining Corp.

The panel, headed by coal additional secretary A K Dubey, has also recommended imposition or deduction of bank guarantees on companies like NTPC, Steel Authority of India and Tenughat Vidyut Nigam. No action has been recommended against three other coal blocks — Mandakini a belonging to Tata Power, Jindal Photo, Monnet Ispat & Energy; Mandla North of Jaiprakash Associates and Sondiha of Chhattisgarh Mineral Development Corporation.

-Sourced