JSPL, promoted by Congress MP Naveen Jindal, has said that it will mount a legal challenge against the Government’s decision to de-allocate its blocks.

The Coal Ministry has decided to de-allocate two of JSPL’s blocks: Ramchandi (for a coal to liquid project) and Gare Palma IV/6 (in a joint venture with Nalwa Sponge Iron).

The review panel has recommended de-allocation of both blocks. However, a decision on Gare Palma, in Chhattisgarh, has been put on hold as the matter is being heard the Delhi High Court.

A JSPL spokesperson said the company had filed an application for a prospecting licence more than three years ago for the Ramchandi block in Odisha.

But the State has not granted the licence in spite of a rigorous follow-up, he said.

Moreover, the Ministry of Coal took 18 months to take a decision on JSPL’s request to redraw the boundary of the coal block as a State highway, with habitation on both sides, passed through the block.

As of December 31, 2013, JSPL had invested ₹77.89 crore in the coal-to-liquid project, the spokesperson added.

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