- Coal ministry has asked to insert a new clause in mining lease – supply low cost electricity or surrender coal blocks.
- Steel ministries to probe misuse of coal by Jindal Steel & Power from its four blocks in Chhattisgarh.
In June last year, the Centre said all power firms that own coal blocks should participate in bids invited by state distribution firms to make sure that the benefit of coal blocks goes to the common man. “However, it has been noticed that many coal block allocates have not complied with the said conditions,” the coal ministry said in a note to chief secretaries of states where the mines are located.
Between 1993 and 2009, the coal ministry allotted coal blocks to 29 companies, including Essar Power, JSW Steel, GVK Power, Jindal Steel & Power, Tata Power, Hindalco Industries, Adani Power, GMR, Arcelor Mittal India, Lanco, Reliance Energy and others. A coal ministry official said that ministries of power and law were consulted last year to examine if all coal block allottees for the power sector can be compelled to participate in the bids from distribution companies.
Steel ministry will investigate Jindal coal block:
“The coal from all our captive mines are used in respective end use plants. There is no diversion of any coal from any mine whatsoever. The allegations are completely baseless,” company's director, external affairs Manu Kapoor said.
The company owns mining licences for nine coal blocks with about 2,600 million tonnes of reserves of which four – Gare Palma IV/1, Gare Palma IV/2, Gare Palma IV/3 and Gare Palma IV/6 are in Chhattisgarh.
The four blocks being investigated hold 526 million tonne reserves and have been allocated for specific sponge iron and power projects. “Use of coal for any other purpose or its sale by a private captive coal block is illegal under the Coal Mines Nationalisation Act, 1973.
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