The Hindu Business Line : Consortium partners of Chhattisgarh Captive Coal resolve differences

New Delhi June 26 The differences among the consortium partners of joint venture company Chhattisgarh Captive Coal Mining Ltd (CCCML) have been resolved and each member has been given revised quantities of coal allocation.

The Coal Ministry has also given its approval and the actual work on the ground is expected to begin soon.

As per the revised allocation Godawari Power & Ispat Ltd will now be getting 63 million tonnes (mt) or around 25.93 per cent of the total 243 mt. The company was earlier supposed to have got 88 mt or 36.21 per cent of the available coal. According to a senior official in the Coal Ministry, "Under the revised allocation Ind-Agro Synergy Ltd would now get 48 mt as against the earlier 27 mt, Nakoda Ispat Ltd Ltd will get 36 mt as against 55 mt earlier, Bajrang Power and Ispat Ltd and Vandana Global Ltd have been allocated 48 mt each as against the earlier allocation of 18 mt and 55 mt respectively."

The joint venture, which was incorporated as a special purpose company for development and operation of coal blocks (Nakai I and II and Madanpur North & South blocks) in Chhattisgarh, had run into trouble and there was also a threat that it could be terminated.

"During the meeting with the consortium members we told them that since the allocation for the development of coal blocks was already done, the Government will not be able to revise the quantity of coal that could be obtained but rework the allocation. This was acceptable to all the members," the official said.

He, however, added that since the matter was resolved recently it is still not clear as to when the work on the ground would actually begin and for what the consortium companies would utilise the proceeds for.

But Godawari Power & Ispat in a recent announcement to the stock exchange has said that it will use the coal from the area to meet its requirements over the next 30 years for the existing manufacturing capacities of sponge iron and power generation.

"The Government was also very keen that the consortium did not terminate its joint venture as this was the first consortium that was allocated to develop a coal block. And if this project failed then it could have set a bad precedent for the things to follow," the official added.

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