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The Coal ministry has served an ultimatum to developers of six captive coal blocks in Odisha, allowing them three weeks to obtain necessary approvals and present documents supporting the progress that has been made in developing the blocks.
Lack of mandatory clearances could mean de-allocation of the blocks since the ministry is unlikely to allow further time after the Supreme Court directed it to decide on the fate of the blocks at the earliest.
Notices have been issued to Radhikapur (east), Utkal B1, Utkal B2, Utkal C, Rampia and dip side of Rampia and Mandakini coal blocks. At stake are the projects of big corporate players like Jindal Steel & Power Ltd (JSPL), Reliance Energy, GMR Energy, Lanco Power and Indian Metals & Ferro Alloys Ltd (IMFA). These are among the 61 coal blocks to have got the notices from the ministry.
"Three weeks time will be given to allocatees to obtain the requisite approvals and produce documents as proof in support and within a week thereafter, a decision for the de-allocation will be taken. Further, state governments concerned and the Ministry of environment and forests shall also submit their views within three weeks time to this ministry," stated the letter from the Coal ministry.
The ministry's letter has clarified that coal blocks that are yet to obtain environment and forest clearance will be de-allocated. Also, the blocks without prospecting license (PL) or those blocks where geological reports have not been prepared after receipt of PL run the risk of de-allocation.
The allocatees of captive blocks are asked to furnish information on whether environment and forest clearance have been obtained, mining lease is executed, PL is obtained and coal block offered at the time of allocation was unexplored/partially explored/regionally explored. The deadline is February 5 except for allocatees awaiting Stage-II forest clearance who have been allowed time till February 14.
In case of Rampia and dip side of Rampia coal block, the Odisha government was in a fix over grant of PL after ArcelorMittal, one of the co-allocatees offered to surrender its portion of the block.
The Coal ministry had jointly allocated the Rampia coal block to six companies- ArcelorMittal, Sterlite Energy, GMR Energy, Lanco Group, Navabharat Power and Reliance Energy in 2008.
