Tuesday, December 11, 2012

Odisha loses Baitarani West Coal Block



BHUBANESWAR: Again the State Government lost a coal block allocated to the Odisha Mining Corporation (OMC). Following the de-allocation of Utkal-D and Mandakini-B coal blocks to the OMC, it was the turn of Baitarani West coal block under Talcher coalfields in Angul district.which was de-allocated by the Ministry of Coal after getting the recommendations from an Inter-Ministerial Group (IMG).

The Baitarani west coal block with reserve of 600 million tonnes had been jointly allocated in July, 2007 to Odisha Hydro Power Corporation (OHPC), Gujarat Power Corporation Limited (GPCL) and Kerala State Electricity Board (KSEB). The Coal Ministry has already informed about the de-allocation of the coal block to all the three companies who were proposed to set up power plant in their respective States. 

The Coal Ministry has conducted various review meetings from time to time with the representatives of the three State PSUs to expedite the development of the coal block. On May 2, 2012, the Ministry of Coal sent a show cause notice to the three State owned companies saying, “In the review meeting held on January 12, 2012, it was noticed that no serious efforts have been made by the company to develop the coal block even after repeated assurances given by the company during the period. It is also noticed that all the important/critical milestones such as forest clearance, environment management plan, mining lease and land acquisition are pending for Baitarani West coal block. The company has repeatedly failed to keep its promises made to the Ministry and is thus non-serious about timely development of the block”.

The IMG had gone through various points, terms and conditions of the allocation and presentation made by the company before giving the notice for de-allocation. As per the IMG, no progress has been made on any of the three end-user projects to be set up in the three States. According to the IMG, the companies didn’t clear environment clearance, forest clearance and possession of land even though three years have lapsed since the mining plan was approved in 2009. Even application of forest clearance has not been made, the IMG noted.

Due to unsatisfactory progress in development of the coal mine and end-use plants and taking into account all factors, the Coal Ministry de-allocated the coal block after accepting the recommendations of the IMG. The bank guarantee related to the development of the coal block, which amounts to Rs 37.50 crore, has also been forfeited.

It may be noted that the State has high hope on the coal block as it has received a proposal from Kerala to tie up for setting up a 1,000 MW pit-head coal-fired power plant at the cost of Rs 4,500- Rs 5000 crore close to the Baitarani west coal block.

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