Coal block to Gujarat may be scrapped

A coal block jointly allocated to Gujarat and Puducherry governments in Odisha's Angul district is likely to be cancelled following the former showing no sign of setting up power plants near the site.

The Union coal ministry had recently shot a letter to the Gujarat government, saying the change in its commitment to shift the power plant to its own state instead of locating it closer to the pithead has so far not taken favorably either by the Odisha government or the ministry of power. The coal ministry put the onus on Gujarat government to pursue the Odisha government and the power ministry on the matter and get back to it latest by April 30. "In case no response is received by April 30, 2012, the ministry of coal would be constrained to acknowledge that ministry of power and government of Odisha have not accepted the shifting of the power plant to Gujarat," the April 10 letter to Gujarat chief secretary said.

Sources here said the state government, already in deep trouble for mindlessly allowing industrial projects mostly by private houses and acquiring thousands of acres of agriculture lands, is wary of giving its consent for taking away coal for use in other states. "We had supported the joint allocation of coal block at Naini in Angul district because Gujarat Mineral Development Corporation (GMDC) and Pondicherry Industrial Promotion Development and Investment Corporation Ltd. (PIPDICL) had committed to set up two 1500 mw capacity power plants. We kept quiet after finding the GMDC planning to shift the power plant to Gujarat and use our coal," said a senior official in the energy department, indicating the allocation of coal block is most likely to be cancelled under the circumstances. He said chief minister earlier this year had drawn the attention of the Centre seeking cancellation of certain coal blocks.

The Naini coal block is reported to have a reserve of over 500 mt and it was jointly allocated to GMDC and PIPDICL in 2007. Both the government bodies had subsequently formed a joint venture, Naini Coal Company, for developing the coal block. The PIPDICL on its part had entered into pact with a private industrial house for setting up a 1980 mw power plant here and even signed MoU with the state government. Sources however said trouble started after the GMDC wanted to transport coal to its own state instead of setting up power plant either at Angul or, as per the official commitment, near Dumka in Jharkhand.

The Centre's move on Naini coal block is bound to bring relief for the local people as the mining project, if materializes, will displace people in more than five villages and acquire over 800 acres of land. The Talcher region dotted with coal mines and many power plants, both functioning and proposed, has been witnessing unabated public protests on issues involving displacement, pollution, growing scarcity of drinking water and agriculture land.

Source: Times of India