New Delhi: The government has threatened to
cancel the coal block alloted jointly to ArcelorMittal and
GVK Power in Jharkhand for the inordinate delay in developing
the property.
The coal ministry has served notice on September 23 to
both the companies and sought their replies within 15 days,
seeking reasons for the delay in developing the mines allotted
for captive use.
"In spite of a passage of almost one and half year, no
serious effort has been made by your company to develop the
coal block as per the milestone chart appended to the
allotment letter. Consequently, the development of the coal
block has been inordinately delayed," the ministry said in the
letter dated September 23.
The ministry said the exploration has not begun as yet
whereas it should have been completed by now as per the time
schedule for development of the block.
Asking both the companies to reply within the stated
time-frame, the ministry said, "...falling which it will be
presumed that your company has no explanation to furnish and
action as appropriate will be taken against your company for
de-allocation of Seregarha coal block."
When contacted ArcelorMittal India CEO (Mining) M P Singh
told a news agency, "ArcelorMittal has received the show-cause notice.
But delay is not because of us. We will reply appropriately to
the coal ministry soon."
GVK Power also confirmed receiving the notice.
ArcelorMittal was alloted the Seregarha block in
Jharkhand to meet the coal requirement of 103.50 MT for its
750-MW captive power plant at Sariakela in Jharkhand with GVK
Power which needed 82.80 MT coal for 600 MW power plant in
Punjab.
It is learnt that the Jharkhand Government has taken a
decision not to grant any mining and prospecting licences
during the prevailing President Rule in the state.
The steel major is struggling to get various regulatory
clearances for its proposed Rs 1 lakh crore steel plants in
Jharkhand and Orissa having 12 million tonne per annum (MTPA)
capacity each.
Bureau Report
First Published: Tuesday, September 29, 2009, 19:51