Coal Min to cancel 15 blocks of PSUs including NTPC's

The Coal Ministry today took a decision to deallocate 14 coal blocks and 1 lignite block awarded to public sector companies like NTPC and DVC, besides 3 private firms, over their failure to develop the same for captive use, an official said.

"The ministry is going to deallocate 15 blocks, including five allotted to National Thermal Power Corporation (NTPC). These firms were alloted 14 coal blocks and one lignite block in 2007, but failed to explore and develop the same despite showcause notices," a senior Coal Ministry official said.

Apart from NTPC, the ministry has decided to cancel the licences for blocks awarded to Damodar Valley Corporation, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam and the Electricity Boards of Bihar and Jharkhand, among others, for non-adherence to norms, the official said.

The private firms to which deallocation notices were issued include VS Lignite and Baidyanath Ayurved Bhawan.

Earlier, the government had served notices on 81 steel, power and cement firms for not developing the coal blocks within the allocated timeframe.

Coal Minister Sriprakash Jaiswal had said the government was serious over the issue as the same concerned precious resources lying idle.

The firms had given different reasons, including land acquisition problems, for their inability to develop these blocks.

To weed out non-serious players, the government had last year issued notices to the firms and sought their responses as to why coal blocks allocated to them should not be withdrawn, as they had failed to develop them within the allotted timeframe.

The companies which were issued showcause notices include Jindal Steel and Power, JSW Steel and GMR Energy, among others.