The Government, on Friday, issued show-cause notice to public sector power producer NTPC and 10 other private companies to explain the delay in development of coal blocks allocated to them.
The private companies facing the notice include JSPL, GVK Power, Monnet Ispat, Jaiprakash Associates, Dalmia Cement, Birla Corporation, and Chaman Metalics.
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,” Government 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 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.
In order to expedite the development of coal block, review meetings were held from time to time by an inter-ministerial group. And wherever the inter-ministerial group found the progress unsatisfactory, caution notice were issued.
The Government move has come after an inter-ministerial group, with representatives from various Ministries, reviewed the progress of the coal blocks. The panel offered opportunities to each of the mine developer to present their case.
According to the Government, in many of these blocks the companies are yet to acquire the land and submit application to seek mine opening permission. The Coal Controller’s Organisation prepares the status report of the mines.
The companies facing show-cause notice were not willing to comment when contacted by Business Line .
According to industry watchers, land acquisition has been a major cause for delay.
For example, NTPC is targeting production from its Pakri Barwadih mine by end of this financial year. However, villagers in Barkagaon and Keredari in the vicinity of the block are not allowing Thiess India (appointed by NTPC for mining) to go ahead.