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De-allocation of coal block: Chhattisgarh mulls legal action

Press Trust of India  |  New Delhi 

The Coal Ministry had in a letter dated November 30, 2012 to Chhattisgarh Mineral Development Corporation (CMDC) de-allocated Shankarpur (Bhatgaon-II) & Ext coal block alloted to it and directed forfeiture of 50 per cent of bank guarantee.

"Reasons stated in the order for de-allocation of coal block are environmental or forest clearance, delay in land acquisition and contradiction or variation in figures relating to the cost of the project.. .

"In various newspapers, there is that the allocation of coal blocks has been de-allocated because of the errors in the formation of joint venture companies.

This is unfair and it is also not mentioned in the de-allocation letter," CMDC, Managing Director Prem Kumar said in a statement issued late night today.

CMDC will send a letter to the coal ministry with all the relevant facts mentioned above and will take legal action if required, it said adding that the letter of de-allocation issued by the coal ministry does not take cognisance of the entire facts.

According to brief facts mentioned in the statement, coal block was allotted to CMDC on July 25, 2007.

As per the allocation letter, stipulated timeline for production from the mines is 54 months.

Since mining is a part of Bhatgaon coal block project, production was to start from January 2012.

"Since CMDC is a government body, it took 14 months to take funds from government for depositing bank guarantee and submitting geological report, which was necessary.

"The process of land acquisition took one year as it was necessary to take approval from each village and inform them about compensation and rehabilitation," it said. MORE

First Published: Sun, December 02 2012. 23:15 IST