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.