Production halted at 10 coal blocks in Chhattisgarh

As many as 10 coal blocks were allotted in the state of Chhattisgarh in last five years but none could start the production. Of the 10 coal blocks that were allotted by the ministry of coal since 2008 in Chhattisgarh that accounts for about 17 per cent of the Nation's coal reserves, seven were to the private companies and two were for the public sector. One coal block was allotted to joint venture of a private and public understanding.

"Coal production in none of the coal block allotted after 2008 in the state could start," Chief Minister Raman Singh said in a written reply to a question raised by Nandkumar Patel in the Chhattisgarh Legislative Assembly on Tuesday.

Singh said the ministry of coal was authorised to take decision on the coal mine allotment and cancellation. "As per the information that the state government has received from the ministry, allocation of three companies were cancelled for failing to complete the formalities and conditions," the chief minister said.

During the period, mines allotted to three companies were cancelled, Singh informed the House. Two companies had however moved to the court of law challenging the decision of the ministry of coal. Of the companies include state-run Chhattisgarh Mineral Development Corporation (CMDC) that was allotted mine before 2008 and had leased out the coal block to the firm owned by BJP Member of Parliament, Ajay Sancheti.

The CMDC's coal in Surajpur district was cancelled on November 30, 2012. The other companies whose mine allocation were cancelled include Binani Cement and the joint group of Electrotherm Private Limited and Grasim Industries Limited.

The companies that were allotted coal blocks in last five years include a joint group of JDL Yawatmal Energy Limited, RKM PowerGen Private Limited, Visa Power Limited, Green Infrastructure and Vandana Power, SKS Ispat and Power Limited and Prakash Industries Limited, Rathi Udyog Limited, Binani Cement, Goa Industrial Corporation, Electrotherm Private Limited and Grasim Industries Limited.

In 2009, two coal blocks were allotted in Korba and Sarguja region. On was allotted jointly to Monet Ispat and Topworth Steel Private Limited, and Akaltara Power Limited. In 2010, no coal block was allotted in the state while in 2011 two blocks were allotted to a consortium of 16 companies and jointly to Coal India Limited and SKS Ispat and Power Limited.