The Coal Ministry on Friday said it has de-allocated a coal block in Chhattisgarh allocated to Rathi Udyog Ltd, now known as Rathi Steel and Power Ltd.

CBI had earlier registered FIR against Rathi Steel and Power in connection with the alleged graft in allocation of coal blocks.

“As the allocatee company has been given a number of opportunities to develop the coal block and associated end use project and the company has failed to develop the same as per the milestones prescribed without any valid reasons for the delay, it has been decided to de-allocate the Kesla North coal block in the state of Chhattisgarh allocated to Rathi Udyog Ltd,” the Coal Ministry said in a letter dated January 2 to the Managing Director of the company.

The ministry further said the decision was taken after the recommendation of the Inter-Ministerial Group (IMG) for de-allocation of the mine. “The recommendations of the IMG has since been considered and approved by the government,” it said.

The ministry further said the company shall not be eligible for allocation of any block in lieu of de-allocated block.

“As per the order date December 6, 2013 of the High Court of Delhi ...this order shall come into effect after ten (10) days from the date of dispatch,” the ministry said.

“The de-allocation/cancellation of mining lease shall be without any liability to the government or its agencies, whatsoever. Any expenses incurred by the allocatee or any right or liability arising on the allocatee out of the measures taken by him shall solely be to his account and in no way be transferred to or borne by the government or its agencies,” it said.

Related Topics