NTPC, 7 firms served notices for delays to develop coal blocks

The government today served show cause notices on eight firms, including NTPC, asking them either to give explanations for delays in developing coal blocks alloted to them or be ready to face "action".

The Coal Ministry in separate notices to firms sought their reply within 30 days as to why "delay in the development of coal block should not be held as violation of the terms and conditions of the allotment," and said failing their response, it would initiate process for "de-allocation" of blocks.

The Ministry in a notice to NTPC, which was alloted Chatibariatu  and Kerandari blocks in Jharkhand and Dulanga in Orissa for captive use said, "the company has repeatedly failed to keep its promises...And (is) non serious about timely development of the blocks."

The power projects based on the blocks were to commence generation latest by the terminal year (March 2012) of the 11th Five Year Plan, it said, adding that progress on all fronts including land acquisition was slow.

These blocks were issued to the power company in 2006 for captive use.

On October 1, too, the government had issued two separate notices to National Thermal Power Corporation (NTPC) for failure to develop Pakri Barwadih, Jharkhand and Talaipalli, Chhattisgarh coal blocks.

Notices were also issued to Bhushan and Mahavir Ferro Alloys for failing to develop Bijahan coal block, jointly alloted to them in 2006 to meet their coal requirement for 4 million tonnes and 1.26 million tonnes, respectively, for captive use in their specified end use projects.

Others who were served notices for failure to develop blocks included Maharashtra State Mining Corporation, Tamil Nadu State Electricity Board, Jayaswal Neco, Bihar Rajya Khanij Vikas Nigam and Yamuna Coal Company.

The notices come as part of the Coal Ministry's drive to remove "non-serious" firms that have procrastinated development of allocated captive blocks.

So far the government has served notices to about 35 companies in this regard. Last month, the government had said it was in the process of issuing show-cause notices to 81 firms.

In July, the ministry had convened a review meeting with the concerned companies, which have been allocated a total of 207 coal blocks for captive use under power, cement and steel projects.