Public sector power behemoth NTPC, steel sector giant SAIL and 10 other companies were issued showcause notices on Tuesday by the Coal Ministry, which wanted to know why they had failed in developing the allocated mines. These companies were also told that their mines could be de-allocated by June 30 for having failed to develop them within the given time frame.
The ministry has given these companies a 20-day time line by which they are expected to furnish reasons for the delay in developing the allocated mines.
Apart from NTPC and SAIL, which were issued show cause notices for failing to develop Talaipalli block and Sitanala coking coal block, the other firms which were issued notices included TVNL, Damodar Valley Corporation, Bhushan Steel and Power, West Bengal Power Development Corporation and Madhya Pradesh and Maharashtra State Mining corporations. The notices were issued for failing to develop 12 blocks including Gondulpara, Jamkhani, Brinda, Sasai, Meral, Radhikapur, West Gangaramchak, Gangaramchak Bhadulia, Marki barka and Warora coal blocks that were alloted to them between June 2003 and July 2007.
One of the pre-condition of allocation was that the open cast mines were supposed to start production in 36 months while a time period of 48 months were given for underground mines from the date of allocation, the ministry said in the notice.
An Inter-Ministerial Group (IMG) was constituted in June last year to look into the progress made by those who had been allocated mines. But the IMG was dissatisfied with the progress made by these companies.
It added that the IMG in its meeting on May 1 found that no significant progress was made in development of coal blocks and noticed that a number of important critical milestones were still pending.
Earlier the Ministry had issued show cause notices to 11 firms including JSPL, Monnet Ispat, NTPC, GVK Power, Abhijit Infrastructure, Rungta Mines, OCL India and Ocean Ispat Ltd. last week for not developing the mines allotted to them for captive use.