CoalMin issues showcause notices to Adani Power, Jayaswal Neco

Showcause notices have been issued due to unsatisfactory progress

The Coal Ministry has issued show cause notices to Adani Power and Jayaswal Neco Industries Ltd for delays in developing the mines allocated to them for captive use.

"You are hereby called upon to show-cause, on each milestone separately to this period within a period of 20 days...As to why the delay in the development of coal block (s) should not be held as violation of the terms and conditions of allocation...And why the coal block (s) should not be deallocated," the Ministry said in letters to both the companies.

While Adani Power has been slapped a notice for failing to develop Lohara West & Lohara Ext (E) coal block, Jayaswal Neco Industries has given the notice for Gare Palma IV/8 coal block, the Ministry said.

"Keeping in view the unsatisfactory progress, IMG (Inter-Ministerial Group) recommended to issue show cause notice for delay in development of coal block (s). The recommendation of the IMG has since been considered and accepted by the government," the letters said.

The Coal Ministry had earlier slapped show cause notices to six companies, including Rungta Mines, for delays in developing blocks.

The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation for delays in development of mines.

The panel under the chairmanship of Additional Secretary in the Coal Ministry comprises members from other ministries, including steel and power.