It is reported that TATA could not start exploration of the North of Arkhapal and Srirampur coal block in Odisha allotted to its joint venture firm as execution of Prospecting Licence deed with the state government is still pending.

TATA in a statement said "Though the block was allocated in February 2009, the PL order was issued by the Government of Odisha only on March 15 2012. The execution of the PL deed is still pending without which exploration cannot proceed."

The North of Arkhapal and Srirampur coal block located in the Talcher region of Odisha was awarded to a JV between TATA group companies and Sasol of South Africa for a Coal to Liquids project.

The two groups had formed the joint venture, Strategic Energy Technology Systems Private Limited to carry out the project which envisaged an investment of INR 45,000 crore.

TATA said the coal block was awarded to in a structured process based on predetermined criteria.

The statement added that "The joint venture was not meted out any extraordinary treatment. Meanwhile, the company said actual exploration is required to determine if the block has appropriate quantity and quality of coal reserves for the CTL project.”

It said "In the event that the block has insufficient reserves of the appropriate quality for CTL then the block will be returned to the government."

Source - moneycontrol

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