CoalMin to seek CCI nod to speed up mine development

Some of the mineral-rich states had conveyed to the Centre that it would not be prudent step to process the leases in view of the investigation by the CBI.

Orissa government had written to coal secretary SK Srivastava on October 13 that in view of the CBI’s FIR against Hindalco’s Talabira-II block,they would not proceed on executing 29 leases which were pending until the agency completes its investigation.

“In view of the pending litigations and investigation by the CBI,we consider that proceeding further in respect of such allocations may not be advisable till the closure of investigation,” Orissa’s letter said.

Following the refusal by the states,the coal ministry approached the law ministry for its views. The law ministry too has concurred with the states that “since the matter is sub judice before Supreme Court,it may not be advisable to proceed without seeking clarification” from the court.

Despite the law ministry’s observations,the coal ministry is set to place its case before the CCI.

“We have decided to approach the Cabinet Committee on Investment soon to seek its views on the issue. Let the Cabinet decide,” coal secretary SK Srivastava told The Indian Express.

He added that action has been taken in all cases where irregularities were spotted.

“But a general premise cannot be made that all allocations were irregular,nor should anyone presume that action should be initiated against all block holders. Why should the states desist from executing leases when there are no irregularities?” Srivastava said.

A cumulative expenditure of around Rs 8,777.18 crore has been incurred for the development of 157 out of 178 allocated blocks.

Following the latest round of cancellation of eleven blocks,certified investment of over Rs 24,000 crore for developing the captive mines may get sunk.

Of the 218 coal blocks allocated to public and private firms,holding estimated geological reserves of about 50 billion tonnes,47 have been cancelled.

Two mines were re-allotted to eligible companies and cancellation letters in respect of three coal blocks to NTPC and two blocks allocated to Damodar Valley Corporation and Jharkhand State Electricity Board were withdrawn.