Coal Secretary questions de-allocation recommendation of government panel

The two top officials in the Coal Ministry are at odds with each other after an inter-ministerial group, set up by the government to review the development of coal blocks, recommended the de-allocation of two blocks, sources said.

The situation was triggered off when the ministerial group, headed by Additional Secretary Zohra Chatterji, recommended the de-allocation of two coal blocks in Jharkhand.

Coal Secretary S.K. Srivastava is of the view that the ministerial panel should not have expressed its opinion on the cancellation of coal block licenses since the guidelines for de-allocation have yet to be finalized, sources said.

The Jitpur and Lohari blocks had been allotted to JSPL and Usha Martin, respectively. The companies allegedly did not develop the blocks optimally, leading the panel to recommend de-allocation, the sources added.

The coal secretary is unhappy that the panel did not give the companies concerned an opportunity to defend themselves, the sources said.

In response to a query from Mr. Srivastava on the rationale behind de-allocating the Jitpur and Lohari coal blocks, Ms Chatterji said the panel has only “recommended” de-allocation and the final decision is pending.

On giving the concerned parties an opportunity to present their case, she wrote, “The paper, including replies to the show cause notices, required by the ministerial group have not yet been put up or circulated.” The reason given by the additional secretary is that the concerned department within the ministry is, “overburdened with work related to a CBI inquiry”.

However, officials from the concerned companies said this is not a valid reason for recommending de-allocation.

Officials from other ministries which are a part of the inter-ministerial group said the de-allocation reports may be baseless, and the panel will only review the progress of the coal blocks at a September 3 meeting and may not recommend any cancellation.

The ministerial panel has asked the concerned department of the Coal Ministry to table all relevant facts before it to facilitate recommending appropriate action.