Bhubaneswar, Feb. 18: De-allocation of two coal blocks in the state by the Centre has delivered a blow to the industrialisation.

The Ramchandi promotional coal block allotted to Jindal Steel and Power Limited (JSPL) and the North of Arkhapal-Srirampur coal blocks in Talcher allocated to a consortium of Tata group of companies and a South African energy major Sasol were cancelled by the coal ministry on the basis of an inter ministerial group’s recommendation, sources said.

Both the groups are to set up coal-to-liquid plants. While the Jindal group is to set up its Rs 75,000-crore plant in Angul and Strategic Energy Technology Systems Limited, a joint venture company of Tatas and Sasol’s Rs 45,000-crore plant will come up in Dhenkanal. The coal ministry cancelled the allotment on the ground of “unsatisfactory progress” of the two mining projects.

An official communication from the coal ministry said the companies had opportunities to develop the coal block and pursue the CTL projects. But, they failed to do within the prescribed time limit without valid reasons. “It has been decided to de-allocate the coal blocks,” said director of the coal ministry S.K. Sahi.

The state’s steel and mines minister Rajanikant Singh called the decision “unfortunate” and said: “The Centre never supports Odisha’s industrialisation process.”

A Jindal group official said the company would approach the judiciary but the response of the Tata Group could not be ascertained immediately.