PTI reported that the Gujarat government has allotted Gujarat Mineral Development Corporation's Naini coal block in Orissa to Adani and Torrent groups.

Both Gujarat based companies will have 50% share each in the block, which was awarded to the state run GMDC by the Indian government in 2006.

The state government has accommodated Adani group, which was refused to be given fuel by the GMDC earlier on account of higher price of power.

A top official in the state industry department said that “Mr Narendra Modi CM of Gujarat has cleared the file splitting the entire block between Torrent group and Adani group” He added that finally, a long pending issue involving three corporates engaged in energy generation and distribution, has been resolved.

The state government has not approved GMDC's prior agreement with Hyderabad based KSK Energy, which had signed an pact with GMDC to develop the block and set up a power plant on the pit head.

Meanwhile, GMDC was allotted two coal blocks, Morga in Chhatisgarh and Naini in Orrisa, in 2006. Having procured the block in Morga, GMDC had signed a Fuel Supply Agreement with KSK Energy for setting up a power plant of 1,750 MW at the pit head.

(Sourced from Press Trust of India)