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Wednesday, July 20, 2011

Indian coal ministry issues warnings to 3 firms

Wednesday, 20 Jul 2011 (by ET)

The coal ministry on Friday issued warning to three companies for delay in development of three coal blocks. The coal ministry has asked Andhra Pradesh Power Generation Corp, Tenughat Vidyut Nigam and Jharkhand State Mineral Development Corp to begin production from allocated coal blocks without any delay.

The ministry said that "Any further failure in development of the block would lead to necessary action as per the terms and conditions, including deallocation of the coal block."

The Tadicherla I coal block was allocated by the coal ministry in 2005 to Andhra Pradesh Power Generation Corporation to meet requirement of 500-mw unit of the Bhoopalpalli thermal power station.

Warning was issued to Jharkhand State Mineral Development Corporation Ltd for Pindra-Debipur Khowatand block, while notice sent to Tenughat Vidyut Nigam Ltd was in connection with the Rajbar E&D block. The government allocated both blocks in 2006.

The government had last week asked Tenughat Vidyut Nigam to begin production from Badam coal block in Jharkhand. Warnings have earlier been sent to five other firms including Jindal Steel and Power Ltd and GVK Power that have been sitting idle on coal blocks allocated to them for captive use.

The government has cancelled coal blocks allocated to various firms, including NTPC, Damodar Valley Corporation and Andhra Pradesh Power Generation Corporation Ltd upon recommendation of a panel. The panel had recommended issuing warnings to 29 coal and three lignite blocks allocatees.

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