Adani-run coal mine misses operation deadline

The Rajasthan Rajya Vidyut Utpadan Nigam Ltd has now sought the community's nod for enhancing output from 10 million tonnes to 15 MT a year

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The Adani Group-operated Parsa East and Kete Basan coal blocks in Chhattisgarh is planning a major expansion plan despite failing to develop the mine within the deadline.

The mines had been originally allotted to state-run Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) for feeding its power plants. Adani Mining was selected as Mine Developer and Operator (MDO) to extract 10 million tonnes coal per annum.

The RRVUNL has now sought the community’s nod for enhancing the output to 15 million tonnes per annum. The public hearing for the expansion of Parsa East and Kete Basan will be held on September 11. Green activists have also geared up to oppose the expansion, citing technical reasons.

“The MDO could not achieve the target and run the mines to the full capacity and hence granting permission for further expansion was not practical,” Alok Shukla, convenor of Chhattisgarh Bachao Andolan, said. The organisation will oppose the proceedings, he added.

The ministry of coal, in a memorandum dated May 3, 2016, directed the Kolkata-based Coal Controller Organisation (CCO) to invoke Rs 16.48452 crore from the bank guarantee furnished by prior allottees (RRVUNL) of Parsa East and Kete Basan coal blocks and deposit the same with the government.

RRVUNL had submitted a Performance Bank Guarantee in terms of the allocation letter for timely development and production of coal from the block. “However, it was noticed that prior allottee RRVUNL did not develop the block as per the timelines in terms of the allocation letter,” the memorandum, a copy of which is in possession of Business Standard, said. Accordingly, a show cause notice was issued to the RRVUNL.

Neither the RRVUNL nor the Adani Group responded to the e-mail sent for its version on the issue.

“There is another important point that made the expansion plan impractical; the project does not have Forest Clearance (FC),” Shukla said. The National Green Tribunal (NGT) had cancelled the FC in March 2014 and the order was later stayed by the apex court facilitating continuation of the operation in the mines having estimated reserves of over 450 million tonnes.