New Delhi: Tightening its noose around the erring companies which failed to develop coal blocks allocated to them for captive use, the government has de-allocated a mine in Chhattisgarh jointly allocated to a JV of Navbharat Coalfields and Ultratech among others.
The Centre's decision to cancel the mine follows recommendation for de-allocation by an Inter-Ministerial Group which reviewed the progress of Madanpur (North) block in Chhattisgarh and found it unsatisfactory.
"The Madanpur (North) block allocated to your company vide this Ministry's letter dated January 13 is de-allocated," Coal Ministry has said in a letter to the CMDs of Ultratech Ltd, Singhal Enterprises, Navbharat Coalfields, Vandana Energy, Prakash Industries, Anjani Steel, Sunflag Iron and a consortium of companies.
However, it has also mentioned that it has put on hold any further action in the wake of an interim order by Delhi High Court but also made it clear that the JV "shall not be eligible for allocation of coal block in lieu of the de-allocated coal block."
The block has a coal reserve of 242 million tonnes (MT) and was allotted to these companies for sponge iron plant.
These companies had formed a joint venture company "Madanpur (North) Coal Company Private Ltd" to develop the block.
