You are here: Home » Economy & Policy » News
Business Standard

IMG de-allocates Bhaskarpara block allotted to Electrotherm

Till now, 13 coal blocks out of 29 discussed by the IMG have been de-allocated

BS Reporter  |  Mumbai/ Ahmedabad 

Now a Gujarat based company comes under the axe of the Inter-Ministerial Group (IMG) which on Thursday recommended de-allocation of two coal blocks, including the Bhaskarpara block that was allotted to Electrotherm (India) Ltd (EIL) and Grasim Industries. EIL's shares fell 2.04 per cent on the Bombay Stock Exchange (BSE) during the day closing at Rs 48.

The IMG in its meeting on Thursday recommended de-allocation of two coal blocks, Dahegaon Makardhokra in Maharashtra and Bhaskarpara in Chhattisgarh. While Dahegaon Makardhokra block was allotted to IST Steel & Power, Gujarat Ambuja Cements and Lafarge, the Bhaskarpara block is with Electrotherm and Ultratech Cements, a division of Grasim Industries.

The Bhaskarapara block with a deposit of around 45 million tonnes of coal was allotted to Electrotherm (India) Ltd and Grasim Industries Ltd in 2008. Ahmedabad-based Electrotherm India Ltd., had signed a joint venture agreement with Aditya Birla Group's Grasim Industries Ltd for a coal extraction. According to the terms of the agreement, Electrotherm was holding 52 per cent share while the remaining was held by Grasim.

The JV partners had planned to invest Rs 300 crore for coal extraction from the mine, EIL had said earlier. The company, however, could not be reached for a comment on the issue at the moment.

While Grasim had planned to use the coal for its cement division, Electrotherm was using it for steel production as well as power generation.

The Rs 1645.49 crore company has a 360,000 tonnes per annum (TPA) steel plant at Kutch district of Gujarat which produces structural steel, alloy steel and stainless steel.

The Gujarat High Court, however, had ordered a shut down of the company's steel plant in May this year as it lacked proper environment clearance mandatory under Environment Impact Assessment Notification,2006.

The Court cancelled the environment clearance granted in January 2010 and asked the company to shut down production in the plant with immediate effect.

Till now, 13 coal blocks out of 29 discussed by the IMG have been de-allocated.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, September 21 2012. 00:48 IST