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Journalism of Courage
The worlds biggest steel producer ArcelorMittal runs the risk of losing its allocated coal mines if they continue to be idle. Intensifying its drive to enforce accountability on companies that have kept their blocks of coal mines idle,the coal ministry has threatened ArcelorMittal and Andhra Pradesh-headquartered GVK Power of de-allocating the Seregarha block jointly allocated to them.
The ministry has issued a notice jointly to steel tycoon Lakshmi Niwas Mittals company ArcelorMittal and GVK Power Goindwal Sahib for failing to develop the Seregarha block in Jharkhand,which has reserves of nearly 200 million tonne. Notices have been sent also to several other power and mining companies run by states for delaying production from their blocks.
If the ministry has its way,at least four companies may lose their blocks besides forfeiting their bank guarantees. Among these,25 are state-run companies,while 15 are private firms.
Elaborating on the show-cause notice served on Arcelor Mittal and GVK Power,the official said during review meetings on October 15-16 last year,the companies were told that their progress was very slow and there seemed to be no intention on the part of the allocatees to develop the block.
Then in another review meeting held on June 22 and 23,the ministry found out that they had not even secured the prospecting licence and that the exploration had not yet begun,As per the time schedule for development of the block,it should be nearing completion by now, the official said.
In the notice served jointly on these two companies,the ministry observed,In spite of a passage of almost 1.5 years,no serious efforts has been made by your company to develop the coal block as per the milestone chart appended to the allotment letter. Consequently,the development of the coal block has been inordinately delayed.
The letter served on September 23 has asked the companies to furnish their replies within 15 days,failing which the ministry would initiate necessary action for de-allocation of the Seregarha coal block. Of the 200 MT reserves,Arcelor Mittal wanted to utilise 103.50 MT for its captive power plant at Seraikela in Jharkhand,while independent power producer GVK wants 82.80 MT coal for its 600 MW plant at Goindwal Sahib in Punjab.
Of the 191 blocks allocated so far,barely a dozen have reached the envisaged production levels. The remaining blocks some of which were allotted as early as 1998 have either not secured environmental clearances or have not submitted acceptable mining plans to the government.
