State gets back four coal blocks

PHEROZE L. VINCENT

New Delhi, Jan. 3: Coal minister Sriprakash Jaiswal has kept his promise to friend and Jharkhand chief minister Arjun Munda with his ministry taking an "in-principle" decision to re-allocate four out of five coal blocks taken away in May.

The blocks — three of which were with National Thermal Power Corporation (NTPC) in Karanpura, one with Jharkhand State Electricity Board (JSEB) in Banhardih (Latehar) and another that was jointly allocated to Damodar Valley Corporation (DVC) and Jharkhand government undertaking Tenughat Vidyut Nigam Limited (TVNL) in Gondulpara (Hazaribagh) — were taken away after the companies overshot their deadlines to develop them.

The blocks, which were allocated between 2006 and 2007, translate into a combined reserve of 1,836 million tonnes. The companies had blamed the delay in developing them on Naxalites, slow land acquisition and forest clearances.

"Except the JSEB block in Banhardih, all other blocks have been cleared for in-principle re-allocation under strict conditions. They (the companies) will have to deposit a stipulated bank guarantee and undertake that they will develop the mine within 24 months. This can be extended by another 12 months if their reasons are satisfactory. If there is still delay, they will not only lose the block, but also the guarantee," a senior official in Jaiswal's office told The Telegraph.

He added that the Banhardih block also might be re-allocated to JSEB soon, as a policy decision was taken on this in a meeting chaired by additional secretary (coal) Zohra Chatterji more than a month back.

Munda, along with his deputy Hemant Soren, had met Jaiswal in July to protest against the coal blocks being taken away. They pitched for a review on grounds that Banhardih was awarded through the state dispensation route and all the blocks were critical to ensure power to a new state trying to attract industry. Then, Jaiswal had promised, on camera, to help his "dost Mundaji."

JSEB wants to use the Banhardih coal block for developing a new thermal power project of 1,320MW to 1,980MW capacity in Patratu in collaboration with private partners.

Last year, the power ministry had also written to the coal ministry that cancelling the allotment of coal blocks would seriously hamper NTPC's aim to increase power production by 15,000MW.