Govt seeks latest details on captive coal mines

The government today asked companies having captive coal mines to provide by month end the latest details of coal use, including reasons for delay in developing allocated reserves.

The latest move comes on the heels of Coal Ministry announcing to issue show-cause notices to those entities that are yet to develop allocated reserves to either begin production or face deallocation.

In a letter to all captive coal block allocatees and joint venture firms, the Coal Ministry said, "You are requested to send the detailed information for the quarter ending March 2012, in respect of allocated coal. Block and associated end use projects along with the reasons on delay in implementation of the coal, Project to this office by March 31, 2012."

"Reasons for delay in achieving the milestones of coal block projects as well as end use project may be furnished properly to frame a suitable reply to Ministry of Coal," the letter said.

The Coal Ministry has been in the news following disclosure of a draft report of the Comptroller and Auditor General (CAG) which had pointed out that the government lost Rs 10.67 lakh crore on account of allotment of coal blocks to 100 private and public sector companies during 2004 to 2009.

Early this month, the coal ministry had said that was likely to issue show-cause notices to coal blocks holders, asking them to either start production or face deallocation.

The decision to issue show-cause notices to those sitting idle on captive coal blocks was taken by a panel looking into the development of reserves, sources said.

Concerned over the increasing demand supply gap, the coal ministry had in January reviewed the progress of mines allocated to companies, including Tata Steel , Coal India , SAIL and NTPC for captive use.

The progress of coal blocks allotted to firms, including Jindal Power, Jindal Steel & Power, BALCO and MMTC was also reviewed during the two-day meeting.