Coal Ministry issues show-cause notices to 12 firms

  • 12/06/2013

  • Tribune (New Delhi)

Continuing with the strong action as suggested by the Inter Ministerial Group (IMG) for not developing the coal mines, the Coal Ministry has issued show-cause notices to 12 companies, including public sector undertakings (PSUs) seeking an explanation from them for not developing the blocks and why the same should not be de-allocated. The show-cause notices have been issued to PSUs like NTPC, SAIL, Damodar Valley Corporation, other state agencies and private companies and they have been asked to file their replies in the next 20 days, failing which it would be presumed that the companies have no explanation to offer and appropriate action would be initiated for the de-allocation of the coal blocks. The show-cause notices have been issued following the meeting of the IMG on May 1, 2013, in which it was noticed that none of the companies had made significant progress in developing the mines allocated to them. The IMG then recommended to the Coal Ministry to de-allocate the coal blocks after seeking explanation from the companies. The companies facing notices 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. Earlier on June 7, the ministry had issued similar show-cause notices to public sector power producer NTPC and 10 other private companies, to explain the delay in development of coal blocks allocated to them. “You are hereby called upon to show cause, on each milestone separately, to this Ministry within a period of 20 days as to why the delay in the development of the coal block should not be held as violation of the terms and conditions of the allotment,” the notice said. In addition, the government also asked these companies to divulge the progress of end-use projects for which the mines were allocated. The notices to firms have been issued for 12 blocks that include Gondulpara, Jamkhani, Brinda, Sasai, Meral, Radhikapur (West), Gangaramchak, Gangaramchak Bhadulia, Marki Barka and Warora coal blocks alloted between June 2003 and July 2007. Strong action Show-cause notices have been issued to NTPC, SAIL, Damodar Valley Corporation, other state agencies and private companies They have been told to file their replies in the next 20 days, failing which it would be presumed that the companies have no explanation to offer and appropriate action would be initiated for the de-allocation of coal blocks