Notices served to 5 firms for delays in developing coal blocks

A Coal India subsidiary and three firms of the OP Jindal group were served show cause notices by the government for 'inordinate delays' in developing a coal block jointly allocated to them.

The Coal Ministry, seeking a response from the companies in a month's span for delays warned that failing this de-allo -cation process should be initiated "for violation of the terms and conditions" of the allotment of Utkal-A and Gopal Prasad West coal block in Orissa.

"Various review meetings were held from time to time with the representatives of Mahanadi Coalfields, JSW Steel, Jindal Thermal Power, Jindal Stainless Steels and Shyam DRI...It was noticed that no serious efforts have been made to develop the coal blocks, even after repeated assurances," the notice said.
    
The companies had assured production from the block by January 2010.
   
"...You are hereby called upon to show cause on each milestone (lease, land acquisition, production etc) separately ...Failing which it would be presumed that your company has no explanation to offer and action would be taken against your company for de-allocation," the notice sent to them said.
    
OP Jindal group firms refused to comment on the issue saying they were minority holders of the block with CIL subsidiary holding 60 per cent of the block. CIL subsidiary and Shyam DRI, however, could not be reached for their comments.
    
The notice is part of government's drive to weed out "non-serious" companies that have procrastinated development of allocated captive blocks.
    
The Coal Ministry has so far issued notices to 28 coal companies, including these five. It has prepared a list of 81 such firms, who were alloted captive blocks long back.