The Coal Ministry on Tuesday issued show-cause notices to 12 companies for failing to develop coal mines according to schedule.
If the companies are unable to convince the inter-ministerial group looking into the issue then there is a possibility of de-allocation.
While NTPC has been at the receiving end for the second time this year, other companies which have been served notices include SAIL, Damodar Valley Corporation, Maharashtra State Mining Corp, MP 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 show-cause notices to NTPC and 10 other private companies to explain the delay in developing the coal blocks allocated to them.
The 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 asked the companies.
In addition, the Government also asked these companies to divulge the progress of end-use projects for which the mines were allocated.
The Ministry said that in order to expedite the development of coal blocks, periodic review meetings were held. And wherever the inter-ministerial group found the progress unsatisfactory, caution notices were issued.
The Government’s move has come after an inter-ministerial group with representatives from various ministries reviewed the progress of the coal blocks. The panel also offered opportunities to all the mine developers to present their case.
The final decision of de-allocating the coal blocks lies with Union Coal Minister Sriprakash Jaiswal. In 2012, the Government de-allocated more than 10 coal blocks and deducted bank guarantees of several companies.