Jharkhand urges coal ministry not to cancel coal block of JSMDC

Jharkhand government has requested the Prime Minister and the Union Coal Ministry not to cancel the coal blocks allotted to the state-run public sector company, Jharkhand State Mineral Development Corporation (JSMDC).

Official sources said among the allocated eight mines, the state government had earlier decided to form a joint venture with private sector companies. State’s Deputy Chief Minister, Hemant Soren told media that if the allocated coal blocks of JSMDC were cancelled at this state, the state-run JSMDC would suffer huge financial losses on bank guarantees, geological report, preparation and submission of mine plan etc.

The minister said that if the allotment of coal blocks of the JSMDC were cancelled it would adverse on the economy of the state. The state’s Deputy Chief Minister had handed over a letter to the Prime Minister to this effect.

The state’s Deputy Chief Minister who is in-charge of the mines and geology department called on Prime Minister, Manmohan Singh and Union Coal Minister Sriprakash Jaiswal on Monday along with the additional chief secretary, A. K. Sarkar requesting them not take any drastic steps against coal blocks allocated to JSMDC.

It may be mentioned that Jharkhand had received allocation of fifty coal blocks during 2006 and 2011.The Ministry of Coal had earlier issued a warning to JSMDC that if the coal blocks were not developed immediately it would face cancellation. Similar censure was also passed on Jharkhand State Electricity Board (JSEB) for delays in progress of Urma Paharitola coal blocks.

The Coal Ministry had also issued letters to six prominent private companies asking to develop the coal blocks allocated to them immediately.