Thursday, 12 May 2011
Indian state owned power companies whose coal blocks were taken back last week have questioned the government's move to revoke their licenses while sparing private companies.
Public sector firms, including NTPC, Damodar Valley Corporation, Andhra Pradesh Power Generation Corp and Jharkhand State Electricity Board, said they have invested huge sums in developing the mines while many private firms have not even begun preliminary groundwork.
A senior coal ministry official, however, said the decision to cancel allocations was made after a thorough evaluation.
Earlier the coal ministry decided to revoke licenses of 14 coal blocks, 12 of which belonged to state run companies. The blocks were de allocated because the mines were not developed on time. But the ministry action came as a surprise because this was the first time when so many blocks were de allocated in one go. The ministry had so far cancelled only 10 blocks but that was over several years. The blocks will now go to state run Coal India.
A report of a review committee headed by coal ministry additional secretary Mr Alok Perti had recommended issuing cancellation orders to 26 firms, including private players like TATA Steel, Hindalco Industries, JSW Steel and Jindal Power. However, coal blocks of only two private companies Shree Baidyanath Ayurved and Bhatia International have been revoked.
NTPC has invested over INR 300 crore in the five mines which were cancelled, CMD Mr Arup Roy Choudhury said that his company had a better record in mines development in comparison to CIL. He added that "The progress made by us is comparable with international benchmarks. The decision will be detrimental for the nation. We are sure to convince the ministry of coal."
An NTPC official said the ministry was apprised at the review meeting about the issues delaying the development of the blocks. He added that "They had appreciated and assured us that the mines would not be taken back.”
Jharkhand State Electricity Board chairman Mr Shiv Basant said that "This is an unfair decision. We would take a follow-up action soon. We got the detailed exploration conducted ourselves as CMPDIL refused to do it for us. We had told the ministry about the law and order situation. This came as a surprise to us. At least we are making efforts unlike some private companies who have not made any progress at all."
Andhra Pradesh Power Generation Corp CMD MrS Bhattacharyya said the company's board would meet shortly to decide its course of action. He said that "We are preparing detailed project reports. Instead of taking decisions based on set milestones, the government should consider cases on individual basis.”
Ministry rules said that an opencast mine should become operational within 36 months while underground mines in 48 months. An additional six months is allowed if the block is in a forest.
(sourced from ET)
Indian state owned power companies whose coal blocks were taken back last week have questioned the government's move to revoke their licenses while sparing private companies.
Public sector firms, including NTPC, Damodar Valley Corporation, Andhra Pradesh Power Generation Corp and Jharkhand State Electricity Board, said they have invested huge sums in developing the mines while many private firms have not even begun preliminary groundwork.
A senior coal ministry official, however, said the decision to cancel allocations was made after a thorough evaluation.
Earlier the coal ministry decided to revoke licenses of 14 coal blocks, 12 of which belonged to state run companies. The blocks were de allocated because the mines were not developed on time. But the ministry action came as a surprise because this was the first time when so many blocks were de allocated in one go. The ministry had so far cancelled only 10 blocks but that was over several years. The blocks will now go to state run Coal India.
A report of a review committee headed by coal ministry additional secretary Mr Alok Perti had recommended issuing cancellation orders to 26 firms, including private players like TATA Steel, Hindalco Industries, JSW Steel and Jindal Power. However, coal blocks of only two private companies Shree Baidyanath Ayurved and Bhatia International have been revoked.
NTPC has invested over INR 300 crore in the five mines which were cancelled, CMD Mr Arup Roy Choudhury said that his company had a better record in mines development in comparison to CIL. He added that "The progress made by us is comparable with international benchmarks. The decision will be detrimental for the nation. We are sure to convince the ministry of coal."
An NTPC official said the ministry was apprised at the review meeting about the issues delaying the development of the blocks. He added that "They had appreciated and assured us that the mines would not be taken back.”
Jharkhand State Electricity Board chairman Mr Shiv Basant said that "This is an unfair decision. We would take a follow-up action soon. We got the detailed exploration conducted ourselves as CMPDIL refused to do it for us. We had told the ministry about the law and order situation. This came as a surprise to us. At least we are making efforts unlike some private companies who have not made any progress at all."
Andhra Pradesh Power Generation Corp CMD MrS Bhattacharyya said the company's board would meet shortly to decide its course of action. He said that "We are preparing detailed project reports. Instead of taking decisions based on set milestones, the government should consider cases on individual basis.”
Ministry rules said that an opencast mine should become operational within 36 months while underground mines in 48 months. An additional six months is allowed if the block is in a forest.
(sourced from ET)
Posts
No comments:
Post a Comment