Odisha govt gears up to collect unpaid dues of auctioned coal mines

The Union Coal Ministry asked state governments to submit claims in respect of revenue, taxes, cess, additional levy and rates unpaid by previous allottees of the blocks

The state government has asked the water resources, energy and revenue departments to identify unpaid dues from previous allottees of Talabira 1, Mandakini A and Utkal-C coal mines, which were recently sold out to new owners through an on-line auction process.

The action is being taken as per the advice of Union Coal Ministry, which had asked the state governments to submit claims in respect of revenue, taxes, cess, additional levy and rates unpaid by previous allottees of the blocks.

“All such claims have to be filed by noon of 26 March. You are requested to take immediate steps for submission of claims in respect of your departments,” state steel and mines secretary R K Sharma said in a note sheet.

Talabira 1, earlier operated by Hindalco Industries, was the only operational mines in the state in the private sector and catered to the need of the captive power plant of the aluminum maker. After the auction, GMR Energy Chhattisgarh is now the owner of the block.

Mandakini A coal block was first allotted to Mandakini Coal Company Ltd. (MCCL), a joint venture of Tata Power, Monnet Ispat & Energy Ltd and Jindal India Photo Ltd (JITPL). Monnet retained the ownership of the coal block after the auction, in association with JITPL, through a JV company called Mandakini Exploration and Mining.

Monnet Energy also bagged the Utkal C coal mines, previously allotted to Indian Metals and Ferro Alloys (IMFA) in the auction. The earlier allocation of all these mines to private companies was declared illegal by the Supreme Court last year. The central government had then decided to auction the coal blocks to garner revenue and maintain transparency in the allotment process. Mandakini A and Utkal C were about to start operation when the apex court's order came. The lease deed of these mines was not signed, depriving the state government to claim revenues from surface rent, dead rent, stamp duty and other levies. So, the government is finding out whether the previous allottees defaulted in payment of water tax and other dues claimed by local authorities for these mines, sources said.

In case of operational coal mine Talabira 1, the state government will find out whether Hindalco defaulted in payment of any dues applicable for an operating coal mine.