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Construction : General1213 | May 2011 | Source : Construction Update

Government to cancel licences 15 coal and lignite blocks, NTPC to lose coal blocks

The Government of India has decided to cancel licences for 15 coal and lignite blocks as concerned companies have not started the production at the sites so far. Besides this, nine other companies, including National Thermal Power Corporation (NTPC) will also lose coal blocks as they have also failed to develop the projects on time. NTPC has invested 500 crore on the five coal blocks. According to government statement, it should have started production at three of total five coal blocks, awarded to the corporation in 2006.

The move from the government seems to send a message to those, who have acquired the coal blocks but are not wiling to start the production. Apart from NTPC, Damodar Valley Corporation, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam Ltd and the Electricity Boards of Bihar and Jharkhand may also face the heat, as government is likely to cancel the licences for block awarded to these corporations.

Except 20 coal blocks falling in the no-go area, government has issued notices to 29 coal and three lignite blocks to commence production on time. Government has already cancelled licences for 10 blocks.

A review committed in the month of March this year had suggested that an opencast mine should become operational within 36 months of award and underground mines in 48 months. If the blocks are in forest, six more months can be granted to the companies.

 
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