Govt asks companies for captive coal blocks' status report

The government today asked firms which have been allotted captive coal blocks to submit status report of such reserves for July-September period by October 15, as part of its drive to weed out “non-serious” companies sitting idle on the allotted blocks.

Treating the matter as “most urgent”, the Coal Ministry said “you being a captive coal block allocatee, are requested to send the detailed information for the quarter ended September 2010, positively by October 15.”

It, further, said that in the last assessment meeting, the companies had agreed for quarterly review of progress in their respective blocks and associated end-use project, adding that accordingly, detailed information is being sought.

In a separate development, the government has also issued showcause notices to Domco Smokeless and Abhijit Group firm Corporate Ispat Alloys after their failure to develop the reserves within the stipulated time.

Including the notices to these two firms, the Ministry has quizzed 18 companies, including NTPC, DVC, Hindalco, Monnet Ispat among others, so far in last 15 days.

Corporate Ispat Alloys was given notice for failing to develop Chitarpur coal block in Jharkhand, while notice served to Domco Smokeless Fuels is for inordinate delays in developing Lalgarh (North) coal block in Jharkhand.

Both the coal reserves, given to these firms for captive use, were allocated in 2005. The two companies could not be contacted for their comments.

Last month, the government had said it was in the process of issuing show-cause notices to 81 firms that have procrastinated development of allocated captive blocks.

The notices, while making it clear that the firms have been unsuccessful in adhering to commitments made, say that the de-allocation process would be initiated for “violation of the terms and conditions”, if the companies fail to respond within a month.