Jharkhand demands ₹500cr from PSPCL for overexploiting mine

PATIALA : In yet another shocker for the Punjab State Power Corporation Limited (PSPCL), the Jharkhand government has sent a notice to the state government to pay ₹502 crore for the utility’s overexploitation of the Pachwara coal mine in that state with a private mine operator.

The amount sought is for the period before 2013, when the Supreme Court had cancelled the allocation of all mines. It was noticed, however, that PSPCL had drawn more coal than sanctioned.

Over six years from 2006-2007 to 2011-12, against the 24 million tonne coal that was to be produced, as per the approved mining plan, over 37 million was actually produced and supplied (about 50% above the limit).

The PSPCL has got a notice for paying up on the behalf of EMTA, a company it had hired to run its coal operations. EMTA, on its part, has already dragged the PSPCL in court and is seeking ₹1,800 crore more for its mine operations.

2014 CAG REPORT HAD WARNED AGAINST ‘ILLEGAL MINING’

A 2014 report of the Comptroller and Auditor General (CAG) of the PSPCL had also highlighted that the Union ministry of coal, in July 2010, had observed that production beyond the project-rated capacity was not desirable and even directed the PSPCL not to carry out any illegal mining.

“At that time, when the Union coal ministry objected to over mining of the coal, PSPCL remained mum. Even to CAG objections, the management stated in September 2014 that excess mining was resorted to in order to avoid the import of coal by the PSPCL. The ministry of coal also levied no penalty,” said a PSPCL employee on the condition of anonymity, adding that they were bearing the brunt.

Arun Kumar, assistant director, geology (in-charge coal) of the directorate of mines confirmed that the department had sent a notice to the PSPCL and the EMTA.

PSPCL chief engineer (fuel) Jaswinderpal Singh said the PSPCL was issued the notice as it has its director in Panem.

“It was the coal mine operator EMTA that committed the mistake. The mine operator must pay the amount that the Jharkhand government is demanding. After legal opinion, we will send a reply by next week,” he added.