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Home News Power Sector News Govt may consider deallocation of another coal mine to Kerala

Govt may consider deallocation of another coal mine to Kerala

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Coal MineOn the heels of the government returning two coal blocks of DVC and JSEB, the Coal Ministry today said it will consider whether to give back another deallocated coal mine in Odisha, jointly allocated to three companies, involving as many states. "Since it is a matter in which three states are involved. We will consider whether it (Baitarni coal mine) can be reallocated or not," Coal Minister Sriprakash Jaiswal said after a meeting with Kerala Chief Minister.

He also said Kerala Chief Minister Oommen Chandy called on him, requesting for the reallocation of the forfeited coal block.

"His (Chandy's) first demand was that it (the coal mine) should be reallocated and another mine should be allocated," the minister said.

Baitarni West coal block was jointly allocated in 2007 to Kerala State Electricity Board (KSEB), Gujarat Power Corporation Ltd (GPCL) and Orissa Hydro Power Corporation (OHPC) to meet their requirements -- the proposed 2,000 MW power plant at Pipavav in Gujarat for GPCL, proposed power plants in Kerala for KSEB and proposed 3,000 MW plant in Dehnkanal district for OHPC.

However, the Coal Ministry deallocated the coal block in December for not developing it within the stipulated time.

Last week, the government gave back to Damodar Valley Corporation and Jharkhand State Electricity Board two coal mines that were deallocated after the PSUs had failed to develop them.

The move followed NTPC's getting back three deallocated mines after the approval from the Law Ministry.

DVC's Shaharpur Jamarpani and JSEB's Banhardih coal mines, both in Jharkhand, were forfeited by the Coal Ministry in 2011 as the two companies failed to produce from them within the stipulated timeframe.

Source- Economic Times


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