The Coal Ministry on Tuesday slapped second set of showcause notices on public sector giants such as NTPC, SAIL, Damodar Valley Corporation and other State agencies in addition to private companies.
The companies facing notice include Maharashtra State Mining Corp, Madhya Pradesh State Mining Corp, West Bengal Power Development Corp, Tenughat Vidhyut Nigam, Bhushan Steel & Power, Abhijeet Infrastructure, Rungta Mines, OCL India, and Ocean Ispat.
On June 7, the Government had issued similar showcause notices to public sector power producer NTPC and 10 other private companies to explain the delay in development of coal blocks allocated to them. This may lead to de-allocation of the mines.
The Coal Ministry has asked the companies to reply within the next 20 days. “Why the delay in the development of coal block should not be held as violation of the terms and conditions of the allotment of coal block, failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken for de-allocation of the coal block,” the Government has asked the mine allottes.
In addition, the Government also asked these companies to divulge the progress of end-use projects for which the mines were allocated.
The Ministry has said that to expedite the development of coal block, review meetings were held from time to time. And wherever the inter-ministerial group found the progress unsatisfactory, caution notice were issued.
The Government’s move has come after an inter-ministerial group with representatives from various ministries review the progress of the coal blocks. The panel also offered opportunities to each of the mine developer to present their case.
The final decision of de-allocating a coal blocks lies with Union Coal Minister Sriprakash Jaiswal. In 2012, Government de-allocated more than 10 coal blocks and deducted bank guarantees of several companies.