Centre cancels coal block allotted to JSPL's CTL project

After cancelling the Arkhapal Srirampur coal block given to Tata Steel for a Rs 45,000 crore coal-to-liquid project in Odisha, the Union coal ministry has dealt blow to another CTL project proposed in the state by Jindal Steel and Power Ltd (JSPL).

The Coal ministry has taken away the Ramchandi promotional block allocated to JSPL in 2009 for its CTL project citing considerable delay in development of the mines.

The decision was taken as per the recommendation sent by Inter Ministerial Group (IMG) set up by the Union government. "The IMG noted that in spite of lapse of four and half a year, the allocatee has not been able to procure even the PL (prospecting license) which is the first step," the coal ministry said in the de-allocation notice.

The government felt that since the company was given enough opportunity to develop the coal block in Odisha, its application for another block will not be considered.

"The company shall not be eligible for allocation of coal block in lieu of the de-allocated coal block," said the ministry. Besides, the government ordered to seize Rs 103.93 crore from the bank guarantee submitted by the company as a penalty for delay in development of the coal block. The decision is likely to affect the Rs 50,000 crore CTL project of JSPL near Angul.