The Government has decided to hold back the decision to de-allocate two coal blocks in Jharkhand allocated to Essar Power till Jharkhand High Court order comes.
The Inter-Ministerial Group that reviewed the development of the coal blocks – Ashok Karkatta and Chakla – recommended de-allocation of the mines. “However, the action is put on hold in view of interim order of High Court of Jharkhand on matters filed by Essar Power,” a Coal Ministry notice said.
The Ruias-promoted company has invested ₹3,257 crore in the end-use plant attached to Chakla mine and another ₹245 crore for project attached to Ashok Karkata.
These mines were awarded to source fuel for 1,800 MW power plant at Tori in Latehar district of Jharkhand. Essar Power declined to comment on the issue.
Similarly, the Government has also put on hold decision to de-allocate Chitarpur block allocated to Corporate Ispat Alloys.
This week the Government decided to take away mines awarded to nearly 50 companies including Adani Power, JSPL, Tata Group, Rungta Mines, Arcelor Mittal, Lanco, Hindalco, and GMR.
The Government’s move follows Attorney General Goolam E. Vahanvati informing the Supreme Court on last month that nearly 41 coal blocks allocated to private companies would be taken back if they did not obtain environmental clearances within six weeks.