Govt deallocates coal block in Jharkhand allotted for power project

By: |
Published: January 1, 2020 11:22:52 AM

The government has cancelled the allotment of a coal block for the power project in Jharkhand, as even after a decade of allotment no significant progress was made to operationalise it.

Show cause notices were served by the coal ministry to the company in December 2013, and September and October 2019. 

The government has cancelled the allotment of a coal block for the power project in Jharkhand, as even after a decade of allotment no significant progress was made to operationalise it. The coal block was allotted in 2009, to Karanpura Energy Ltd — an SPV of erstwhile Jharkhand State Electricity Board (JSEB). “It is noted that even after lapse of 10 years since allocation of the coal block (Mourya coal block), no significant progress has been made to operationalise the coal block,” the coal ministry said in a letter to the company.

Due to long delays in the development of coal block, show cause notices were served by the coal ministry to the company in December 2013, and September and October 2019. The company in its reply to the ministry in November 2019 cited non-availability of land, water and resistance from the local inhabitants as impediments in the development of the coal block. The coal ministry, however, said that the reply “was not found satisfactory”.

As per the allocation letter, the ministry said, the mining lease of the block may be cancelled on the grounds, including unsatisfactory progress in the development of coal mining project and breach of any of the conditions of allocation.

In 2009, the ministry had conveyed ‘in principle’ approval to the working of Mourya coal block, in the state of Jharkhand, for power project to be set up by Karanpura Energy Ltd.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Waive fixed electricity charges for food processing industry during lockdown, says Harsimrat Kaur Badal
2What FMCG players need to do to thrive once coronavirus ends; innovation, adaptability key to survive
3Sony confirms PlayStation 5 will have exclusive games; all new PS4 games must be forward compatible