“In view of the above, it has been decided to terminate the allotment agreement and allotment order in respect of Sitanala coal mine. However the agreement and allotment order shall stand terminated w.e.f. October 25, 2018…,” the coal ministry said in a letter to Steel Authority of India Ltd.
The PSU had in March and again in April written to the coal ministry for...
surrendering the coal block. In the letter written on April 27, the Steel Authority of India Ltd (SAIL) had said that the block was techno-commercially non-viable.
“In this context, it is relevant to mention that SAIL is the prior allottee of the said block since April 2007 and as such must be aware of all the conditions of the mine at the time of allotment. Moreover, SAIL being the prior allottee had prepared the mining plan of Sitanala coal mine prior to re-allotment, being aware of the geological conditions of the mine, and the same was vested to them consequent upon reallocation,” the ministry said in the letter.
Also, being the prior allottee, the PSU should have undertaken techno-economic viability study prior to entering into the process of re-allotment and signing of allotment agreement with the Nominated Authority, it added. SAIL has almost completed its around Rs 72,000 crore modernisation and expansion programme.
SAIL had undertaken the modernisation and expansion programme to increase its capacity to 21 million tonnes per annum (MTPA). The financial year 2017-18 witnessed several landmark achievements through ramping up of new facilities and surpassing previous records in physical performance.
The PSU achieved its highest ever production of crude steel at 15.021 million tonnes during financial year 2017-2018.
It also achieved an all-time high production of saleable steel at 14.071 MT and hot metal at 15.983 MT. SAIL has also registered an all-time best performance of continuous-cast steel production at 12.80 mt, a growth of 9 per cent over the previous best of 11.77 million tonne achieved in 2016-2017.
Incorporated on 24 January 1973, SAIL has 74,719 employees (as of 01-Sep-2018). With an annual production of 14.38 million metric tons, SAIL is the largest steel producer in India and one of the largest steel producers in the world. SAIL operates and owns 5 integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro and Burnpur(Asansol) and 3 special steel plants at Salem, Durgapur and Bhadravathi. It also owns a Ferro Alloy plant at Chandrapur.