Coal ministry deallocates two more blocks in Odisha

Continuing its crackdown on non-serious players, the Ministry of Coal deallocated two more coal blocks- Baitarani West and Naini- allotted in Odisha in view of the unsatisfactory progress in development of the coal mines and end-use plants.

The deallocation has been effected by the ministry on the basis of recommendations made by the inter-ministerial group (IMG) of the Centre on coal block allocation. The government has also forfeited 50 per cent bank guarantee provided by the allocatees at the time of allotment.

The deallocation of the two coal blocks comes close on close heels of state controlled miner Odisha Mining Corporation (OMC) losing Utkal-D and Mandakini-B coal blocks due to inordinate delay in their development.

While the Baitarani West coal block was allocated to Odisha Hydro Power Corporation (OHPC) jointly with Gujarat Power Corporation Ltd (GPCL) and Kerala State Electricity Board (KSEB), the Naini block was awarded to two PSUs of other states - Gujarat Mineral Development Corporation (GMDC) and Pondicherry Industrial Promotion Development & Investment Corporation Ltd (PIPDIC).

The Baitarani West coal block was awarded for end-use power plants proposed by OHPC, GPCL and KSEB. There have been 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 IMG observed that though Baitarani West is a fully explored block ann five years have elapsed since the date of allotment (July 25, 2007), 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 allocatees 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.

In case of Naini block, the IMG held that site for end-use plant of GMDC was yet to be finalised.

IMG noted that the development of the coal block is still at the stage of obtaining prospecting licence. Though this coal block is in the list of 11 PSUs in respect of which clearances are held up by the Odisha government, IMG observed that irrespective of this situation which arose only in 2012, the progress and investment in respect of the coal block as well as end-use plants is negligible.