India: Jaypee Cement requests coal re-allocation

Jaypee Cement has requested that the central government allocate the two captive coal blocks won in auction to other firms in need of fuel. Jaypee Cement wished to surrender the two blocks in Maharashtra and Mandla South in Madhya Pradesh following the sale of the attached cement plants.

The company informed The Economic Times India that, “both cement and captive power plants of Jaypee Balaji cement plant are being acquired by Ultratech Cement, but they have shown no interest in taking the coal block. No other cement or captive cement plant, as specified under Coal Mining Development and Production Agreement (CMDPA), is located in the vicinity of the coal block.”

No other end-use plant is available according to Jaypee Cement and the sale of excess coal to Coal India is not commercially viable. "It would be most appropriate for the central government to prevent idling of natural national resource. With this in mind, the company has requested the central government to reallocate the said two coal blocks at Mandla South and Majra to companies in need of coal," Jaypee Cement said.

Jaypee Cement report that it has not received any response to its request.