Tuesday, 26 Oct 2010 The Telegraph reported that six Bengal based sponge iron manufacturers are in a fix as the coal block allotted to them is located in the leasehold area of Great Eastern Energy Corporation Limited that produces coal bed methane from the region.
In 2007, the coal ministry allotted the Biharinath block in Bankura for captive use by the 6 companies that had formed a consortium for the block. However, their plans to start mining on the 10.5 square kilometers block have hit a roadblock after the environment ministry and subsequently the directorate general of mines safety refused to give them the go ahead following objections from GEECL.
The block has coal reserves of 95 million tonnes of which 31 million tonnes can be extracted. The consortium Bankura DRI Mining Manufacturers Co Pvt Limited has entered into an agreement with Australias India Resources Limited for exploration and mining. Bankura DRI expected to mine 700,000 tonnes of coal per annum to be distributed equally among the six companies.
Mr Subhendu Bhattacharjee MD of Bankura DRI said that "Our entire project is now stalled. The environment ministry said it could not process our application till the matter was sorted out among the coal and oil ministries and the two companies. We proposed a joint development model but the DGMS has now said it is not safe."
The development comes at a time Bengal is trying to push industrial growth without hurting the prospects of the coal sector. The Left Front government coaxed many industries, especially steel, to set up a base in Burdwan and Bankura districts. But the projects of companies such as Bhushan Steel, Videocon, Abhijeet Group, Vedanta Aluminium and Bengal Aerotropolis ran into problems over mining land and had to be shifted or realigned following protests from Coal India Limited over the choice of land.
Mr Prashant Modi president & COO of GEECL said that Bankura DRI's move was absolutely illegal and his company would do whatever it takes to prevent mining.
In 2001, the oil ministry awarded the block to GEECL, India's first company to commercially produce coal bed methane. Owned by the Modi family and listed on the London Stock Exchange, the company has invested INR 800 crore in the block spread over 210 square kilometers. However, they are yet to start work at Biharinath.
It is learnt that the Bengal government is in favor of CBM over mining on the grounds of getting the mineral extracted later after the gas has been pumped out.
(Sourced from www.telegraphindia.com)
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