OHPC to move high court against coal ministry order

State PSU to challenge de-allocation of Baitarani west coal block

The Odisha Hydro Power Corporation (OHPC) is set to file a petition in the Odisha High Court, challenging the order of the Ministry of Coal on de-allocation and invocation of 50 per cent bank guarantee in respect of Baitarani west coal block.

The coal block was jointly allocated to OHPC and two PSUs of other states – Gujarat Power Corporation Ltd (GPCL) and Kerala State Electricity Board (KSEB). The Coal ministry on December 11 last year, de-allocated the Baitarani west coal block in view of the unsatisfactory progress made in development of the coal mines and end-use plants.

“All I can say is that a draft resolution of the government is ready to move the Odisha High Court against the Coal ministry's order. Apart from OHPC, the other two allocates- GPCL and KSEB have also agreed to file a case,” said an official source.

OHPC will take the lead on behalf of the three promoting companies for filing a case in the Odisha High Court on condition that the other two firms, GPCL and KSEB offer a letter of authorization favouring the state PSU.

The Baitarani west coal block was awarded for end-use power plants proposed by OHPC, GPCL and KSEB. The Coal ministry observed that there were serious slippages in timelines of achievements of critical milestones of the coal block like submission of bank guarantee, submission of mining plan, grant of forest clearance, completion of land acquisition and grant of EMP (environment management plan) clearance. The ministry had de-allocated the block based on the recommendations of the inter-ministerial group (IMG) formed to oversee status of allocated coal blocks after surfacing of coal blocks allocation row.

The IMG observed that Baitarani west is a fully explored block and five years have elapsed since the date of allotment (July 25, 2007). The group further noted that no progress has been made on any of the three end-use projects to be set up in Odisha, Gujarat and Kerala. Besides, no indication was given by the allocates on expected date of start of production from the coal block even though the normative date for commencing production was January 25, 2011. Moreover, the allocatees were yet to obtain either environment or forest clearance, nor were they able to take possession of land since the approval of mining plan in 2009.