Centre takes back 10 coal blocks from firms like Jindal Steel, Tatas, Adani

The government has cancelled 10 coal blocks allocated to various firms, including Jindal Steel & Power, Tatas and Adani Power, and will de-allocate another 21 soon, official sources said. 'We have already issued letters for de-allocation of 10 blocks on the basis of recommendations of the Inter-Ministerial Group. More letters will be issued in the coming days,' a government official said.

Blocks allocated to the coal to liquid (CTL) projects of JSPL and Strategic Energy Technology Systems Private Ltd. (SETSPL), a JV between a consortium of Tata companies and Sasol of South Africa have been cancelled. A spokesman for SETSPL said the company had done what it could and was waiting for a prospecting licence, which is in the state's realm. Aspokesperson for JSPL said the firm had not received the de-allocation letter, but termed the decision 'completely unwarranted'.

The JSPL spokesperson said the slow progress was due to delays on part of the central and state governments. 'The coal ministry took 18 months to decide the boundary of the coal block and secondly, the state government, over the past three years, has not even granted the prospecting licence.' The spokesperson said the company will challenge the decision in court. 'We have invested Rs 77.89 crore as on December 31 on CTL project and on development of Ramchandi Coal Block.'


ET