“Chief Minister Narendra Modi has cleared the file splitting the entire block between the Torrent group and Adani group,” said a top official in the state industry department.

He added that a long-pending issue involving three corporates engaged in energy generation and distribution has finally being resolved.

The state government has not approved GMDC’s prior agreement with the Hyderabad-based KSK Energy, which had signed a pact with GMDC to develop the block and set up a power plant on the pit head. GMDC was alloted 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 (FSA) with KSK Energy for setting up a power plant of 1,750 MW at the pit head.

Under the agreement, GMDC will supply fuel to KSK, which would set up a power plant of 1,750 MW and sell power to GMDC, which in turn would sell power to the Gujarat Urja Vikas Nigam (GUVNL).

Subsequently, another block was alloted in Naini in Orissa. GMDC had signed an FSA with KSK.