Power Min to review deallocation of coal blocks to DVC

The Power Ministry has written to the Coal Ministry seeking review of its decision to deallocate blocks awarded to Damodar Valley Corporation (DVC).

DVC is a public sector firm which falls under the Power Ministry.

"The Power Ministry recently wrote a letter to the Coal Ministry requesting it to review its decision of scrapping of two coal blocks allocated to DVC," said a source in the Coal Ministry.

The Coal Ministry had in May cancelled the allotment of 14 coal blocks and one lignite block of six public sector firms, including DVC and three private firms for their failure to develop the mines.

Coal Ministry had cancelled DVC's Saharpur Jamarpani coal block in Jharkhand and Gondulpara coal block in the state, jointly allocated to DVC and Tenughat Vidyut Nigam (TVNL).

In June, DVC and TVNL had also asked the Coal Ministry to reconsider its decision to deallocate the Gondulpara coal block, with the mine falling in the "no-go" zone.

Gondulpara coal mine was allocated in 2006 to TVNL as a leader and DVC as an associate to meet the coal requirement for their joint venture power project.

Under its deallocation drive, the Coal Ministry has this year cancelled coal blocks of various firms, including five mines of NTPC and three blocks of Andhra Pradesh Power Generation Corporation.

Other firms that were sent deallocation letters by the Coal Ministry include Bhatia International Ltd, Shree Bhaidyanath Ayurved Bhavan Ltd, Jharkhand State Electricity Board and Gondwana Ispat Ltd.

To weed out non-serious players, the government had last year issued notices to 84 coal and four lignite block allocatees for not developing them within the stipulated time and sought an explanation as to why the rights to the blocks should not be cancelled.