Coal block deallocation affecting our mining ops

Written by PTI | New Delhi | Updated: Nov 25 2013, 08:12am hrs
Slamming the decision to de-allocate their coal blocks, Jindal Steel and Power and Monnet Ispat and Energy have blamed lack of government approvals and external factors such as naxal activities for not making enough progress in their mines.

The two companies, whose 4 blocks figure in the list of 11 to be de-allocated, said that they are being punished for no fault of theirs.

The deallocation is seen as a major setback to both as the blocks were supposed to be the captive raw material source for their upcoming/existing steel and power plants. Jindal's R80,000-crore mega venture of Coal-to-Liquid project is likely to be hit.

The two companies have together invested over R11,000 crore so far on development of their end-use plants. "At the outset, we are shocked and surprised to hear the recommendation made by IMG (inter-ministerial group), it seems that everybody in the policy making/monitoring wants to avoid a pragmatic decision in view of the media hype," Monnet Ispat spokesperson said in a statement.

The JSPL spokesperson said the company's coal blocks are being de-allocated "despite best efforts made by the company and no fault on part of the company".

Last week, the coal ministry decided to de-allocate 11 captive coal blocks to various companies.

JSPL's three Ramchandi promotional block, Amarkonda Murgadangal and Urtan North (jointly with Monnet) figure in the list.