The Coal Ministry has issued a de-allocation notice to Prakash Industries Ltd. (PIL) and seven other companies, cancelling the allotment of the Madanpur (North) coal block allocated in January, 2006, for giving false information besides diverting coal in contravention of the terms and conditions.

The decision to issue the de-allocation notice was taken after the submission of a report by the Inter-Ministerial Committee (IMC) set up by the Ministry of Steel.

In the de-allocation notice, the Coal Ministry stated that PIL was allocated the Chotia coal block in 2003 for its capacity expansion of 0.4 million tonnes annually (mtpa) without disturbing the existing linkage. Coal production from the block started in 2006.

However, the capacity addition of 0.15 mtpa was made only in 2009.

A significant portion of the coal produced from the block is reported to have been used in the captive power plant.

“At the time of allotment of the Chotia coal block, it is stipulated that there should be complete synchronisation between the captive coal mining operation and development of the end-use plant so that no situation arises where the company is left with surplus coal.

However, the same has not been complied with. No washery has been established by PIL for beneficiation of coal,’’ the notice stated.

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