22 September 2012

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Coalgate – Reliance Gain Block is Loss of Coal India DNA Investigation

Coalgate – Reliance Gain Block is Loss of Coal India DNA Investigation

March 1, 2006:
The CIL, NCL, and CMPDIL oppose the proposed allocation of Moher and Moher-Amlohri coal blocks for Sasan UMPP at a high-level meeting

March 14:
VK Singh, NCL chief managing director, writes to the coal ministry, opposing the allocation

March 30:
Central Mine Planning and Design Institute Ltd (CMPDIL) makes a presentation to the ministry of coal, asking for Moher and Moher-Amlohri blocks to be spared for NCL

October 8:
VK Singh writes another letter to the coal ministry, opposing the allocation

October 17:
CIL chairman meets the coal secretary, but in vain

Ignoring stiff opposition and pleas from the state-run Coal India Ltd, the Union government in 2006 allocated two coal blocks to the Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh. Officials had opposed the deallocation of the blocks from the Maharatna public sector undertaking. Their suggestion for alternative coal blocks for the 4,000MW Sasan project, subsequently awarded to Reliance Power

DNA reported that The Sasan UMPP was linked to the national grid on September 17. Reliance Power expects an annual coal production of 20 million tonnes from the Moher and Moher-Amlohri blocks, which were deallocated in 2006. The decision prompted CIL subsidiary National Coalfields Ltd (NCL) to call it a “huge national loss”.

What did the PSU lose? The Rihand Super Thermal Power Plant in Uttar Pradesh linked to these mines suffered, as the NCL CMD’s letter predicted. In his letter, Singh wrote that the NCL had no alternative to the Moher-Amlohri block for the plant’s coal demand for 40 years.

The NCL also permanently lost over 50 million tonnes due to violation of coal ministry guidelines that say private sector blocks should be at reasonable distance from the CIL’s existing mines to avoid operational problems.

Suggested Reading

DNA investigations: Reliance gained as govt ignored Coal India pleas

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Saturday, September 22, 2012

Tags – Coalgate Scam