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Coal min cancels Jaypee's mining license after sale of end-use plant to Ultratech

New Delhi: The coal ministry has cancelled mining license for Mandla South coal block won by Jaypee cement following sale of attached plants to Ultratech Cement. Jaypee Cement sold three of the four projects attached to the Mandla South block in Madhya Pradesh, without the right to cola block, to Ultratech Cement on January 29 last year. 

"The office of Nominated Authority got to know about the sale of end use plant only on when successful bidder was asked about the matter vide letter dated 7th/12th December 2017. Hence, despite of various notices and letters from the office of Nominated Authority to adhere to the terms and conditions of the CMDPA, the successful bidder had sold the end use plants, which is major lapse on the part of successful bidder and also shows the clear intention of successful bidder of being not serious about the development of the coal mine," the ministry wrote in a letter to Jaypee Cement Corp.

The coal ministry has, however, sought explanation from the company within 15 days. Jaypee had won the Mandla South block with a bid of Rs 1,852 a tonne. The ready-to-produce block has extractable reserves of 13.35 million tonne and is reserved for the non-power sector.