CoalMin issues showcause notice to companies

The Coal Ministry today issued show cause notices to 11 coal  firms, including JSPL, Monnet Ispat, NTPC and GVK Power for not developing the mines alloted to them and sought an explanation for delays in production, failing which mines would be deallocated.

"You are hereby called upon to show cause...To the ministry within a period of 20 days from the date of issue of this show cause notice (s) as to why the delay in the development of coal block should not be held as violation of the terms and conditions of the allotment...Failing which... action as appropriate would be taken for deallocation," the Coal Ministry said in show cause notices to 11 firms.

The firms which were issued notices include Jaiprakash Associates, Birla Corporation, Jindal Steel and Power Ltd (JSPL), NTPC, Monnet Ispat and GVK Power.

The notices were issued for 10 coal blocks which includes Utkal-B1, Pakri Barwadih, Urtan North and Mandla North coal block.

When contacted, a Coal Ministry official said that at an inter-ministerial group (IMG) meeting held last month, it was decided that show cause notices would be issued to 30 coal block allocattees. Issuing of the show cause notices to these 11 firms are part of the decision.

The crackdown is part of the government's exercise to ensure that the allocated blocks do not remain unproductive for long.

Last year government auditor CAG, in a report, had estimated likely financial gains to the tune of Rs 1.86 lakh crore to accrue to private coal block allocattees without auction.

The captive coal block allocation issue has also taken political overtures. Besides, CBI is also investigating the matter.

Last year, in a similar exercise, the government had issued show cause notices to 58 coal block allocattees and deallocated blocks of some developers. It also deducted bank guarantees for some others.