CoalMin to review status of formation of JV companies, SPV

To review the current status of progress made in formation of SPV/JV company amongst the state govt companies, Additional Secretary, Ministry of Coal will hold meeting with the representative of the state govt on May 7

The Coal Ministry has convened a meeting next week to review the progress on setting up special purpose vehicles (SPV) and joint ventures among state-owned firms which have been jointly allocated coal blocks.

"To review the current status of progress made in formation of SPV/JV company amongst the state government companies/corporations, those have been allocated coal blocks jointly for end use i.e. power as well as mining, Additional Secretary, Ministry of Coal will hold meeting with the representative of the state government on May 7," the meeting notice said.

"During the last review meeting regarding the progress of formation of special purpose vehicle/ Joint venture (company) between joint allocates of coal blocks...It was observed that, some of the joint allocates are lagging behind in formation of SPV/JV," it said.

The Coal Ministry had earlier asked states to advise the companies that have been allocated mines to either form SPVs or JVs for projects.

Kickstarting the process of coal blocks allocation, the government had last year allocated 17 coal mines - 14 to power and 3 to mining public sector undertakings (PSUs).

Of the 14 blocks alloted to power PSUs, four were alloted to NTPC.

Other power PSUs that were allocated mines included Neyveli Uttar Pradesh Power Ltd, Odisha Thermal Power Corp, Jammu & Kashmir State Power Dev Corp, Chhattisgarh State Power Gen Co Ltd, Andhra Pradesh Generation Co, Maharashtra State Power Generation Co, Rajasthan Vidyut Utpadan Nigam and Punjab State Power Corp Ltd.

Three three blocks were alloted to mining PSUs like Jharkhand State Mineral Development Corp and MP State Mining Corporation Ltd.