Govt deallocates another coal mine of JSPL

The government has deallocated Amarkonda-Murgadandal coal block in Jharkhand allocated to JSPL and Gagan Sponge Iron for delays in its development.

It has also sought explanation from other companies, including the state-owned NTPC, for slow progress in developing their blocks.

The government action on the Jharkhand block is the second dellocation within a week involving JSPL.

"As the allocatee company has been given a number of opportunities to develop the coal block and the company has failed to develop the same," the Coal Ministry said in a letter dated December 20 to both the companies.

"It has been decided to deallocate the Amarkonda Murgadangal coal block in the state of Jharkhand allocated to Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Pvt Ltd,"

The development follows Inter-Ministerial Group (IMG) recommending deallocation of the coal block in its meeting held on October 24 and 25.

"Taking into account the facts brought before it (IMG) including the fact that only BG (Bank Guarantee) has been submitted and all other milestones are pending including the fact that even drilling for detailed exploration could not commence even after a lapse of more than 5 years, IMG recommends deallocation of the block," the letter said.

The ministry has also sought explanation from two firms - NTPC and Orissa Power Generation Corp - for slow progress of coal blocks failing which appropriate action would be taken.

It has sought explanation from NTPC for Dulanga coal block and Orissa Power Generation Corp Ltd for Manoharpur and Dipside of Manoharpur coal blocks.

Last week it cancelled the allotment of a coal block in Madhya Pradesh to JSPL and Monnet Ispat & Energy Ltd as they failed to develop it.

The ministry had also slapped show-cause notices on 14 firms, including JSPL and Hindustan Zinc, for delay in the development of the mines.