ArcelorMittal India Ltd, GVK Power (Govindwal Sahib) Ltd and DCM Shriram Consolidated Ltd have joined the growing list of firms that face the risk of losing captive coal blocks.
The Coal Ministry has warned these firms to expedite development of the allocated blocks or face action, including cancellation of the blocks. ArcelorMittal and GVK were allotted the Seregarha coal block in Jharkhand, while DCM Shriram was allocated the Kaparion-ki-Dhani lignite block in Rajasthan.
Bhushan Power and Steel Ltd, West Bengal Power Development Corporation Ltd and Mideast Integrated Steels Ltd are the other firms to whom the Ministry had issued warning letters recently. “Any further failure in development of the blocks would lead to necessary action…including de-allocation of coal blocks,” the Ministry warned these firms separately.
Further, the Ministry has decided to de-allocate the Lunsara lignite blocks allocated to V.S. Lignite Power Pvt Ltd for the delay in development.
Binani Cement, NSL Nagpatnam Infratech Ltd, Tamil Nadu Electricity Board, Assam Mineral Development Corporation, Meghalaya Development Corporation and Orissa Mining Corporation were the other firms that were told to expedite their development plans.
The Government has so far de-allocated some 24 coal blocks since 2003. About 194 blocks have been allocated to 286 companies for captive consumption since 1993.
Production stagnant
Coal production from such captive mines has been stagnant in the past two years. The delay in development of captive blocks and issues relating to environmental clearances and grant of mining leases have resulted in sluggish output from captive coal blocks.
Coal production from captive blocks stood at 34.6 million tonnes accounting for 6.5 per cent of the country's total output of 532 million tonnes in 2010-11.