The central government has cancelled the joint allocation of a coal block in Odisha to state-owned NTPC and Jammu & Kashmir State Power Development Corporation.

NTPC and Power Development Department, Jammu and Kashmir, had earlier requested the coal ministry for cancellation of the coal block.

"It has been decided, with the approval of competent authority in the Ministry of Coal, to cancel the allocation of Kudanali-Luburi coal block jointly allocated to NTPC Ltd and Jammu & Kashmir State Power Development Corporation Ltd (JKSPDC), " the coal ministry said in a letter to both the companies.

The coal block, in the Talcher Coalfield of Odisha, has a reserve of 396.10 million tonne (MT).

The ministry further said there is no provision under the Mines and Minerals (Development and Regulation) Act, 1957, and the rules made thereunder to allocate fresh coal block in lieu of a cancelled coal block.

"NTPC and JKSPDC may apply afresh for allocation of coal block as and when public notice is issued by the Ministry of Coal/nominated authority for allocation of coal blocks under MMDR Act," the ministry said.