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Coal block allocates in Odisha can expect to start work on development of their blocks soon with the state government deciding to expedite processing of their applications.
The state steel & mines department will recommend around 15 coal blocks after processing applications of the developers in accordance with a check list prepared by the Central mines ministry, said a senior government official in the know of the matter.
The state government's move is set to benefit corporate players like Jindal Steel & Power Ltd-JSPL (Utkal B1 and Ramchandi coal blocks), Monnet Ispat & Energy (Utkal B2), Indian Metals & Ferro Alloys Ltd-IMFA (Utkal B2), National Aluminium Company-Nalco (Utkal E), Odisha Power Generation Corporation- OPGC (Manoharpur and dip side of Manoharpur) and Strategic Energy Technology Systems Private Limited (SETSPL), a joint venture between a consortium of Tata companies and Sasol of South Africa (north of Arkhapal and Srirampur coal block).
Coal blocks of these developers were at an advanced stages having either been granted prospecting licences (PL) or mining leases (ML). Development of these coal blocks, however, was stalled amid Coalgate row with the state government chosing to play safe by sitting over their processing.
The steel & mines department will process these applications as per a check list of the Central mines ministry. The check list among other things seeks to know if the mine lease area is notified, whether the state government has enunciated a public policy stating special reasons for recommending mineral concession applications and whether any revision application/petition is pending in respect of whole or part of the mining lease area.
In December last year, the Odisha government got the go-ahead from Ministry of Coal to initiate due action on development of coal blocks till any irregularities surface.
"Till any irregularities are brought out in specific cases, due action can be taken by Odisha government under Mines and Minerals Development & Regulation (MMDR) Act-1957as to the development of coal blocks as well as executing the pending mining leases and other necessary action as per law”, coal secretary S K Srivastava had said in a letter to Odisha chief secretary B K Patnaik.
Regarding issue of processing of ML applications of allocates who were allocated blocks prior to the amendment of Mines and Minerals Development & Regulation Act (MMDR) Act 1957, MoC said similar issue was raised by the Maharashtra government.
The MoC examined the matter in consultation with Union ministry of law and justice (MoLJ). The MoLJ has opined that there does not appear any legal restriction in getting prior approval of the Central government under Section 5 (1) of MMDR Act-1957 to the companies which have already been allocated coal blocks and allocation letters have been issued prior to commencement of amendment to the Act.
"As and when any irregularity is detected, action can be taken against the allocates on a case-to-case basis. However, a general premise cannot be made that all the allocations are irregular nor any action against the allocates is warranted. The Central Bureau of Investigation (CBI) is also investigating the alleged irregularities. Action as deemed fit would be initiated wherever warranted and the state government would be kept informed so as to initiate suitable action wherever so required under law”, Srivastava stated in the letter.
The MoC had granted 32 coal blocks in all in Odisha of which only the Talabira block awarded to Hindalco Industries had begun production. Recently, the ministry had de-allocated five blocks in the state- Mandakini-B, Utkal-D, New Patrapada, Naini and Baitarani west due to inordinate delay in their development.
