27 Dec 2013 12:09 PM from CapEx
Suparna Chattopadhyay

12 coal block projects gets show cause notice due to non-performance

Promoters summoned to explain the delay in development of the blocks

The Ministry of Coal (MoC) has issued show cause notice to promoters of 12 coal blocks due to delay in development of the blocks. The promoters have been summoned to explain in detail why the milestones which were specified during the allocation of the blocks have not been achieved. They have also been informed that these projects are being monitored regularly and if there is a wilful delay in progress of the coal mines then they will have to face de-allocation of the blocks. The promoters also need to explain the progress of the end use plant (EUP) for which the coal blocks were allocated.

Out of these 12 blocks, 2 coal block projects allocated to Adani Power in Lohara in Chandrapur district, Maharashtra has already been stalled in December 2011 due to its proximity to Tadoba-Andhari Tiger Reserve (TATR). According to wildlife experts and an Environmental Lawyer, the mines will pose threat to tiger population in the vicinity.

The other ten coal blocks are

  1. Essar Power (Jharkhand) Ltd’s Ashok Karkata Coal Block Project at North Karanpura in Hazaribag district, Jharkhand

    The project was announced in November 2007. The coal block was allocated to Essar Power to supply coal to its upcoming Tori-1 thermal power plant at Chandwa at Latehar district, Jharkhand. The Rs.57 billion Tori-1 project is on Cabinet Committee on Investment’s (CCI) list and is awaiting certain clearances. The Expert Appraisal Committee (EAC) has recommended that the project should look for some other source for coal.

  2. Essar Power (Jharkhand) Ltd’s Chakla Coal Block Project at Chandwa in Latehar district, Jharkhand

    This coal block was also allotted to Essar Power for the Tori-1 power plant at the same location. MoC has asked the company to come and explain the missing of deadline for development of the block.

  3. Jayaswal Neco Industries Ltd’s - Coal Washery (Gare Pelma IV/8) Project at Raigarh in Chattishgarh

    The coal washery (Gare Pelma IV/8) was allocated to Jayaswal Neco Industries in March 2010. Investment in the project is estimated around Rs.2.5 billion. Green nod to the project was issued by the Ministry of Environment and Forests (MoEF) in June 2013. The coal block was allotted to the company for its upcoming 1.2 million tonne pelletisation & benefication plant project at Siltara in Raipur district. Although the Rs.4.4 pelletisation & benefication plant is in progress, the company has not developed the coal block.

  4. Reliance Group’s B & C Coal Blocks Project at Kerandari in Tilaiya, Hazaribag, Jharkhand

    The B & C coal blocks were allocated to Reliance Group’s Jharkhand Integrated Power Ltd (JIPL) in July 2007 for sourcing of coal for the company’s Rs.250 billion ultra mega power project (UMPP) at Tilaiya. The 3,960 mw power plant with 6 units of 660 mw is under implementation and JIPL plans to commission the first unit by May 2015.

  5. Jindal Steel & Power Ltd’s Gare Palma IV/6 Coal Block Project at Raigarh in Chattishgarh

    This block was allocated to Jindal Steel & Power (JSPL) in January 2006. The 4 million tonne coal mining project received EC in May 2009. However, the project faced severe opposition from the local villagers and hence work on the project never progressed.

  6. MP Jaypee Coal Ltd’s Dongri Tal-II Coal Block Project at Singrauli, Madhya Pradesh

    The Rs.5 billion coal mining project was allocated to Jaypee Associates in February 2010. The Ministry of Coal feels that the 2.9 million tonne mine has not been developed significantly by the company and hence issued a show cause notice. The mining project has already received EC.

  7. Madanpur South Coal Company Ltd’s Coal Mine project at Madanpur in Korba district of Chhattisgarh

    The Rs.42 billion coal mining project was allocated to Madanpur South Coal Company Ltd in February 2003. Till August 2010 the company has incurred a cost of Rs.27 billion on the project. But significant development in the project is slow. Forest clearance for the project is yet to be issued.

  8. Madhya Pradesh State Mining Corpn. Ltd (MPSMCL)’s Morga-I coal block project at Korba in Chhattisgarh.

    The block was awarded to MPSMCL in August 2006. In March 2007, the company signed a Memorandum of Understanding (MoU) with KSK Energy Ventures Ltd and Infrastructure Development Finance Company Ltd (IDFC) for development, mining and supply of coal to power projects developed by IDFC. But the project remained a non-starter, right from the beginning.

  9. Mideast Integrated Steels (MESCO) Ltd’s Tandsi-III & Tandsi -III (Extn.) Coal Block Project at Chhindwara, Madhya Pradesh.

    The Tandsi-III & Tandsi -III coal blocks was allotted to Rita Singh’s Mesco Group company way back in August 2008. The project is awaiting clearance from the MoEF.

  10. Yamuna Coal Company Ltd’s - Mara II Mahan Coal Mining Project at Singrauli district of Madhya Pradesh

    The Mara-II Mahan coal block was awarded jointly to Government of National Capital Territory of Delhi (GNCTD) and Haryana Power Generation Corporation (HPGCL) by the Ministry of Coal in August 2006. GNCTD in turn authorised IPGCL to pursue the coal mining activity on its behalf, jointly with HPGCL. The mine covers an area of 53 square kilometres and holds an estimated reserve of 955 million tonnes.