In view of the coal-gate controversy back home, the Jindal Steel and Power limited (JSPl) may look to acquire coal mines situated outside the country for the supply.
The corporate major with over USD 3.5 billion annual turnover is facing coal shortage, if not immediate, in the wake of ongoing CBI investigation in coal block allocations and cancelation of its three coal blocks in a recent decision taken by the inter-ministerial group (IMG) set up to look into the issue. “We made our point clear to the IMG when the representation was given. In one case, it was law and order problem while for the others not getting clearances from the State and Centre were the reasons behind delay in developing the coal blocks. We tried our best to convince the IMG and expect the Government to reconsider its decision. Otherwise we have no option but to go abroad to meet our coal requirement,” said VK Mehta, Director of Sales and Marketing of JSPl on Tuesday.
The company had last week been de-allocated Ramchandi Promotional Block (Angul, Odisha), Amarkonda Murgadangal (Jharkhand) and Urtan North (Madhya Pradesh) along with 11 of others. All the allottees had been issued show-cause notices and were asked to furnish their views to the IMG. Ramchandi Promotional Block was exclusively for the country’s pilot coal-to-liquid (CTl) project but the Additional Secretary in the Coal Ministry AK Dubey headed IMG found that enough had not been done to develop the block. However, Mehta expressed his confidence over comfortable run of JSPl’s projects currently operating or at various stages of development in the country. “We have sufficient resources with us to keep running the projects. But we need more for our future plans,” he said.
When asked about 6 million tonne steel making capacity Greenfield project at Asanboni by the company in Jharkhand, which is facing stiff resistance from locals unwilling to give up their land besides unclear iron ore and coal blocks the official said that making any project viable by transporting the minerals from far away from plan sites was extremely difficult.
“We have requested the Jharkhand Government to expedite the necessary clearances to us. We hope for the better,” said Mehta. The company has a series of investments lined up in Jharkhand that include 6 million tonne steel making capacity each at Patratu and Asanboni, along with another 1320 MW power plant at Patratu in Ramgarh district and another with same capacity at Godda. Nevertheless the JSPl is looking to build 4 million tonne steel generation capacity in Jharkhand by 2020.