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.

The coal ministry, however, said that the reply “was not found satisfactory“.

As per the allocation letter, the ministry said, the mining lease of the block may be cancelled on the grounds, including unsatisfactory progress in the development of coal mining project and breach of any of the conditions of allocation.

In 2009, the ministry had conveyed ‘in principle’ approval to the working of Mourya coal block, in the state of Jharkhand, for power project to be set up by Karanpura Energy Ltd.