2 min readNew DelhiOct 11, 2012 03:27 PM IST
First published on: Oct 11, 2012 at 03:27 PM IST
JSW Steel may contest the government’s decision to deallocate its Gourangdih ABC coal mine in West Bengal. Company’s managing director Seshagiri Rao said that though,there has been no official communication by the ministry,the private steelmaker would take all the necessary legal actions to avert such decision.
We have taken effective steps in development of mine and also in implementing the end use plant. We will take it up at appropriate forum either in the court or in the government,if they take that action which is not right, Rao told reporters on Thrusday.
The Gourangdih ABC coal mine in West Bengal was allotted jointly to the Sajjan Jindal-led firm and Himachal EMTA Power Ltd. The mine was to feed the 300 mega watt mw captive power plant which is a part of JSW’s Rs 35,000 crore steel project that was announced in 2007.
An inter-ministerial group IMG had recommended the cancellation of mining leases of the companies who had failed to develop the block with in prescribed period and did not achieve critical milestones including forest clearance,grant of mining lease and land acquisition. Following this,the government on September 18 announced to deallocated Gourangdih ABC block. “We have not done anything wrong here, Rao said.
The deallocation of coal block may delay the proposed steel plant in the state as the company will have no coal. Greenfield projects in India take longer time. If you compare it with any other greenfield projects in India,JSW Steel has made a significant project. We have already spent close to Rs 500 crore. So if we are not committed,we won’t spend that type of money, he said,without divulging any detail on whether the project would be delayed or not.
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