The Coal Ministry has issued show-cause notices to certain corporate entities for not developing the coal mines allotted to them.
The companies are Tenughat Vidhyut Nigam, Jindal Steel & Power Ltd, Monnet Ispat and Tata Power.
Jindal Steel & Power Ltd has received the notice for not developing the Ramchandi promotional block, which was awarded to it in February 2009 for a coal-to-liquid project.
The Coal Controller Office found that no infrastructure has been developed in the block and the company has made no progress in exploring it. JSPL has said that it is in advanced talks with three European and US firms for its ambitious $10-billion coal-to-liquid project.
Tech tie-ups
It has already entered into a technology tie-up with Germany-based Lurgi. JSPL had said it is seeking regulatory clearances to explore the Ramchandi coal block.
This month, the Government had issued similar show-cause notices to several public sector companies, such as NTPC, SAIL and Damodar Valley Corporation, and also to private players such as Jaiprakash Associates, Birla Corporation, Bhushan Steel and Power and Rungta Mines.
The Coal Ministry has asked the companies to reply within the next 20 days. Failing this, they may face de-allocation of mines.
The Central Bureau of Investigation has recorded the statements of two officials in the Prime Minister’s Office on the alleged coal allocation scam, said reports.
Meanwhile, it is expected to also record the statement of T.K.A. Nair, Advisor to Prime Minister Manmohan Singh.
There are indications that the PMO may be called for investigations, with the CBI filing an FIR against the then Minister of State in the Coal Ministry, Dasari Rao.
The investigative agency is also likely to question former Coal Secretary H.C. Gupta on Thursday. Recently, Gupta resigned from the membership of the Competition Commission of India (CCI).
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