Govt threatens to cancel coal block allotted to CMDC

The government has threatened to cancel a coal block allocated to Chhattisgarh Mineral Development Corporation, citing "very slow progress" in development of the reserve.

In the showcause notice issued to CMDC on October 16 for delay in development of the block at the Shankarpur (Bhatgaon II) Extension in the state, the Coal Ministry said that the company's work on the block indicated "a very slow progress".

"In spite of a passage of more than two years, no serious effort has been made by your company to develop the coal block as per the milestone chart appended to the allotment letter. Consequently, the development of the coal block has been inordinately delayed," it said.

The ministry has sought replies from the firm within 15 days of the issue of the letter, seeking reasons for the delay in developing the mines, failing which, it said, the process to de-allocate the block would start.

When contacted, a senior CMDC official said, "The company is in process of formulating its reply."

The Coal Ministry is in the process of issuing notices to 40 companies for failing to develop mines in the blocks allotted to them. ArcelorMittal, Binani Cement and MMTC, JSPL, Nalco are among others which have been issued such notices.