Coal ministry slaps showcause notices to 29 companies for delay in captive coal blocks

The coal ministry has slapped showcause notices to a fresh set of 29 companies that were allotted coal block for captive mining. The notices were served because these companies failed to stick to the milestones for development of these blocks.

According to the rules of allotment of coal blocks, a company has to start production from blocks within three years if coal is to be extracted through open cast mining. However, if the block allotted is on forest land the open cast mine has to be developed within 42 months. In case of underground mines, the time limit is four years or 54 months if the block falls within forest area.

The companies that were served notices have failed to meet one or a couple of milestones and they are slated to miss the deadline for developing these mines.

According to the coal ministry Maharashtra Seamless, Dhariwal Infra, Kesoram Ind showcaused for delay in development of Gondkhari coal block. IST Steel & Power, Gujarat Ambuja Cements and Lafarge have been showcaused for the Dahegaon Makardhokra IV coal block. Assam Mineral Development, Meghalaya Mineral, Tamil Nadu Electricity Board, Orissa Mining Corporation was showcaused for its Mandakini-B block.

Domoco Pvt Ltd was slapped the showcause for delay in development of Lalgarh North coal block. Tenughat Vidyut Nigam received the showcause for delay in development of Rajbar E & D block. Andhra Pradesh Power Gen Corp for delay in development of Tadicheria-I coal block.

Metaliks, Adhunik Corporation and Visa Steel, Bhusan Steel, Orissa Sponge Iron, Adhunik Metaliks, SMS Power and Deepak Steel & Power were also show caused for delay in development of Patrapara block.

Coal ministry show caused CESC and Jas Infracture Capital for delay in development of the Mahuagarhi coal block. Himachal EMTA Power and JSW was also asked to show cause for delay in development of Gourangdih ABC block.

The ministry also pulled up Electrosteel, Jharkhand Ispat, Pawan Jay Steel and Adhunik Alloys & Power slapped showcause for delay in dev of North Dhadu coal block as well as Jindal Steel and Power slapped showcause for delay in development of Jitpur coal block.

The ministry has asked all these companies to respond to the notice within 20 day as to why the delay in development of the coal block should not be held as violation of the terms and development of the coal block should not be held as violation of the terms and condition of the allotment of blocks. Failing this, it will be presumed that the companies are has no explanation to offer and the blocks will be de-allocated.

Source: ET

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