The Coal Ministry today deallocated two coal blocks in Jharkhand allocated to Essar Power Ltd from among the 28 allotments recommended for cancellation.
"Taking all the above facts into consideration, IMG (Inter-Ministerial Group) recommends deallocation of block (Ashok Karkatta and Chakla mines in Jharkhand. The recommendations of IMG have been considered and accepted by the competent authority on February 11, 2014," the Coal Ministry said in separate letters to the company.
With regard to the letter to Essar Power pertaining to Ashok Karkatta coal block, the ministry said, "However, further action is put on hold in view of the interim order of High Court of Jharkhand...Filed by Essar Power as pronounced on February 11, 2014."
The Ministry with regard to the Chakla coal block said "Further action is put on hold."
The development follows the the recommendations of the inter-ministerial group (IMG) which suggested the deallocation of mines.
"The inter-ministerial group on coal blocks has recommended to deallocate 28 coal blocks. The recommendations of the IMG has been accepted by the government and coal blocks would be deallocated," according to a Coal Ministry official.
The move comes in the wake of the panel on coal blocks, reviewing the progress of development of 61 coal blocks.
Some of the coal blocks which have been deallocated includes Lohara West and Lohara Ext (E) mine alloted to Adani Power and Madhujore mine jointly allocated to Ramswarup Lohh Udyog, Adhunik Corporation, Uttam Galva Steels, Howrah Gases, Vikas Metals and Power Ltd, ACC Cement Ltd.
While in some cases the coal blocks have been "deallocated forthwith" in other cases "the action is put of hold, " the coal ministry official said.
Some of blocks where further action with regard to the blocks have been put on hold due to cases pending in the court are Palma IV/6 coal block allocated to Jindal Steel and Power Ltd and Nalwa Sponge Iron Ltd, Rampia and Dip side of Rampia coal block allocated to firms like Arecelor Mittal, Sterlite Energy, Lanco and GMR Energy, Rajgamar Dipside (South of Pulakdih Nala) coal block jointly alloted to Monnet Ispat and Energy Ltd among others.
