Centre de-allocates coal block in Jharkhand

New Delhi: The government has cancelled the allotment of a coal block for the power project in Jharkhand, as even after a decade of allotment no significant progress was made to operationalise it.

The coal block was allotted in 2009, to Karanpura Energy Ltd -- an SPV of erstwhile Jharkhand State Electricity Board (JSEB).

"It is noted that even after lapse of 10 years since allocation of the coal block (Mourya coal block), no significant progress has been made to operationalise the coal block," the coal ministry said in a letter to the company.

Due to long delays in development of coal block, show-cause notices were served by the coal ministry to the company in December 2013, and September and October 2019. The company in its reply to the ministry in November 2019 cited non-availability of land, water and resistance from the local inhabitants as impediments in development of the coal block.