The Union government has decided to deallocate Utkal-D coal block allotted to the state-controlled public sector unit Orissa Mining Corporation (OMC) for delaying production, even as the Orissa government fumed over the decision.
Apart from the OMC’s coal block, the Union government on Saturday de-allocated another coal block given to the Chhattisgarh Mineral Development Corporation for delaying production from the mines.
The coal ministry in a letter to Orissa Mining Corporation said, “Utkal-D coal block allocated to Orissa Mining Corporation is de-allocated. The company shall not be eligible for allocation of coal block in lieu of the de-allocated coal block.” The inter-ministerial group (IMG) had already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.
A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use. The allocation of coal block to the OMC and the latter forming a join-venture (JV) with the Delhi-based Sainik Mining and Allied Services (SMAS) for extraction coal from Utkal ‘D’ Block in Talcher has created a lot of controversy, forcing the Centre order CBI probe into it.
Reacting to the development, Orissa steel and mines minister Rajanikant Singh said the Centre’s action appeared anti-Orissa.
“We wanted to go for coal extraction through the state public sector unit. But the Centre appears in no mood to extend its support for this. It should have consulted with the state before de-allocating the coal block,” Mr Singh added.