Eight power firms may lose coal blocks in Chhattisgarh

March 16th, 2008 - 6:16 pm ICT by admin  

Raipur, March 16 (IANS) Chhattisgarh plans to recommend to the central government cancellation of coal mining lease of at least eight power firms that seem reluctant to set up thermal plants despite signing the deals with the state. “The state government is surprised that several companies which inked deals with the government in past two years seem reluctant to set up power plants in the state and their actual motive was to bag coal blocks,” a senior official of the industry department told IANS.

“The government has recently assessed the status of investment commitment made by dozens of companies and we were surprised that eight power players who are allotted 12 coal blocks in state’s northern region are reluctant to even begin steps to set up power plants,” the source said.

The official said the government would soon ask the companies to honour the MoUs or give a solid reason for delay in the projects.

The official did not name these eight power companies or mention the amount of investment they had committed to bring into the state. Chhattisgarh has nearly 18 percent of country’s coal deposits.

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