Coal ministry notice on Bankhui coal block

Block linked to second UMPP in Odisha

Continuing its spree of crackdown on frivolous coal block allocatees, the Ministry of Coal (MoC) has issued notice to Sakhigopal Integrated Power Company Ltd (SIPCL) for slow progress in developing the Bankhui block.

The Bankhui coal block was allocated by the ministry for the second ultra-mega power plant (UMPP) proposed at Bijoypatna in Bhadrak district. SIPCL is a special purpose vehicle (SPV) formed to implement this UMPP.

The ministry has allowed 20 days’ time to the allocatee to explain the reasons for the sluggish progress in development of the coal block.

“You are hereby called upon to explain on each milestone separately to this ministry within a period of 20 days the reasons for slow progress as well as efforts made by you in development of the coal block, failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken,” S K Shahi, director, MoC wrote to the managing director of SIPCL.

In order to expedite the development of the coal block, review meetings were held from time to time. In the review meeting held on January 11-12 last year, the ministry noted that progress of the block is not satisfactory. Accordingly, the ministry issued an advisory letter dated April 26, 2012 with the direction to expedite the development of the coal block and development of end-use plant so as to ensure expeditious production of coal from the allocated block.

In the meantime, the Government of India constituted an inter-ministerial group (IMG) on June 21 2012 to oversee development of allocated coal blocks and recommend action, including de-allocation if required.

The IMG observed that no significant progress has been made by the SPV towards development of the coal block. It also noted several critical milestones like mining lease application, submission of mining plan, grant of forest clearance, grant of EMP (environment management plan) clearance and land acquisition are still pending in respect of the coal block.