Home » India

De-allocation of coal block: Chhattisgarh mulls legal action

Sunday, 2 December 2012 - 11:43pm IST | Agency: PTI
Chhattisgarh on Sunday called de-allocation of its coal block as "unfair" and said it will take up the matter with Union Coal Ministry besides considering legal measures if required.

Chhattisgarh on Sunday called de-allocation of its coal block as "unfair" and said it will take up the matter with Union Coal Ministry besides considering legal measures if required.

The Coal Ministry had in a letter dated November 30, 2012 to Chhattisgarh Mineral Development Corporation (CMDC) de-allocated Shankarpur (Bhatgaon-II) & Ext coal block alloted to it and directed forfeiture of 50 per cent of bank guarantee.

"Reasons stated in the order for de-allocation of coal block are environmental or forest clearance, delay in land acquisition and contradiction or variation in figures relating to the cost of the project.

"In various newspapers, there is news that the allocation of coal blocks has been de-allocated because of the errors in the formation of joint venture companies. This is unfair and it is also not mentioned in the de-allocation letter," CMDC, Managing Director Prem Kumar said in a statement issued late night.

CMDC will send a letter to the coal ministry with all the relevant facts mentioned above and will take legal action if required, it said adding that the letter of de-allocation issued by the coal ministry does not take cognisance of the entire facts.

According to brief facts mentioned in the statement, coal block was allotted to CMDC on July 25, 2007.

As per the allocation letter, stipulated timeline for production from the mines is 54 months.

Since mining is a part of Bhatgaon coal block project, production was to start from January 2012.

"Since CMDC is a government body, it took 14 months to take funds from government for depositing bank guarantee and submitting geological report, which was necessary.

"The process of land acquisition took one year as it was necessary to take approval from each village and inform them about compensation and rehabilitation," it said.

For environmental clearance, CMDC sent a proposal related to Terms of Reference (ToR) to the Union Forest and Environment ministry on April 29, 2009, clearance of which was received on September 23, 2010. The entire process of ToR clearance took one year and 4 months.

The last approval related to environment clearance is still pending with the Union Environment and Forest Ministry, the statement said.

"Variation in the figures of coal controller and chartered accountant related to expenditure on coal project has been mention as the reason for de-allocation.

"Whereas the fact is that the information given to the coal controller also includes the amount taken as performance guarantee from the joint venture company and the information of direct expenditure on the project sought by the Inter Ministerial Group was mentioned in the Chartered accountant's certificate. Both the figures are correct," it added.


Jump to comments