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Govt fuel hopes dashed as ministry cancels allocation of coal block

The Union Coal ministry has cancelled the allocation of a coal block in Singrauli to the Delhi government because,as per the government’s new policy,mining is no longer permitted in the area.

Written by Express News Service | New Delhi |
June 5, 2010 12:54:24 am

The Union Coal ministry has cancelled the allocation of a coal block in Singrauli to the Delhi government because,as per the government’s new policy,mining is no longer permitted in the area.

Chief Secretary Rakesh Mehta said the Delhi government was hoping to use the coal for a string of “future power projects”.

None of these projects,Mehta told Newsline,are near completion at present,giving the government time to make alternate arrangements.

“The Coal ministry has intimated us about the cancellation of allocation of the coal block at Mara-to-Mahan in Singrauli district in Madhya Pradesh,saying it falls in no-go zone,” Mehta said. “We will now try to source gas for the projects the coal was meant for. Gas is easier to source,and also more environment friendly.”

“The block was allotted to Haryana and Delhi jointly,and we wanted to use it for the proposed thermal power projects,” Mehta added. The government has not yet decided whether the fuel would be used for joint projects by Haryana or Delhi,or divided to be used individually.

With the Capital’s steadily growing power demand,the cancellation is worrying news for many in the Power department.

Officials said thermal generation is the quickest and most affordable way of generating power.

The Capital only generates between 900 and 1,200 MW daily,despite the peak demand being as high as 4,500 MW in summers.

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