Coal ministry pulls up Damodar Valley, 8 others for idling on blocks

Continuing the crackdown against firms sitting idle on coal blocks, the government today said it had sought an explanation from Damodar Valley Corporation and eight others for their failure to meet development commitments.

In the notices issued on October 28 and 29, the coal ministry said the nine firms did not make efforts to develop coal blocks allocated to them, even after repeated warnings from the government.

It asked the companies to reply to the notices within 30 days, failing which action would be taken to strip them of mining rights.

“It is seen that the company(ies) has (have) repeatedly failed to keep its promises...... And, is thus non-serious about timely development of the block,” the ministry said.

Damodar Valley was issued a notice for the delay in developing the Saharpur Jamarpani coal block in Jharkhand, which was awarded in 2007.

Andhra Pradesh Mineral Development Corporation, Jharkhand State Electricity Board, Gujarat Mineral Development Corporation and Bihar State Mineral Development Corporation are among the other companies issued similar notices for the delay in the development of blocks allocated to them.

The other companies were Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation, Tamil Nadu Electricity Board and Orissa Mining Corporation Ltd.