Binani Cement loses mine allocation

The coal ministry has de-allocated a captive coal mine allotted to Binani Cement in Chhattisgarh.

Even after 20 months of allocation, the company had failed to develop it.

Binani Cement and 39 other companies were sent show cause notices by the ministry for not starting any work to develop the allotted coal mines for their captive use.

“We wanted to send a strong message to the companies who were taking our warnings lightly. Coal linkages are very limited in India and only the serious companies  should get a chance to develop such assets,” said a senior official in the coal ministry. “We will cancel more allotments,” the official added.

Binani officials could not be reached for comments.

The coal block in Bisrampur, Chhattisgarh, was allotted to Binani Cement in 2008. The company could not achieve commitment guarantee, mining lease and financial closure.   

The coal ministry had met coal block developers on June 23 last year to review the progress. The ministry found that out of 196 allocated blocks up to March 31, 2009, only 25 had begun production.