MMTC blames Tata Steel for delay in developing coal block

State-run trading firm MMTC has blamed steel giant Tata Steel for its failure to develop a coal block allocated to the PSU in Jharkhand, a charge which the steel maker denied.

The coal ministry, which served a second show-cause notice to MMTC in just over an year's time for the PSU's failure to develop the Gomia coal block, said the company has blamed Tata Steel for the delay.

"MMTC informed that this block being a difficult underground block, they have awarded the work to Tata Steel for pre-feasibility report of the block. But Tata Steel failed to do the job due to local problems," the Coal Ministry said in latest show-cause notice which was served on September 25.

However, refuting the charges, a Tata Steel spokesperson told PTI, "Yes, the job of the feasibility study was awarded to Tata Steel but Tata Steel could not take up the job in absence of Prospecting Licence (PL) to MMTC by the state government."

When contacted, MMTC Chairman and Managing Director Sanjiv Batra said, "We have already applied for the prospecting licence some six months back and the matter is pending with the Jharkhand government." He, however, did not make any comment on Tata Steel.

As per the revised plan, MMTC is expected to start production from the block by August 2011 rather than the earlier target of August 2010. The target may be now revised further.