Ministry notice to CMDC for slow progress on coal block

The Union Coal Ministry has issued notice to the state-run Chhattisgarh Mineral Development Corporation (CMDC) asking why the Sondhiya coal block allotted to it in Sarguja district should not be cancelled for failing to follow the guidelines.

This is the second notice issued by the ministry to the CMDC in a week. Earlier, it had asked the corporation to explain why the Tara coal block allotment in the same district should not be cancelled for the slow progress of the block.

According to sources, the Sondhiya coal block was allotted to the CMDC in July 2007. During the review meeting in October last year, the coal ministry had pointed out that the corporation was not serious to develop the block. Under the guidelines, the company has to develop the block within two years of allotment.

The CMDC officials in the review meeting held in June this year informed that the corporation had formed a Joint Venture with a private company to develop the block. While the CMDC will hold 51 per cent stake, the private company will have 49 per cent share in the company.

The officials added that the other formalities including mining lease, environment and forest clearances, and land acquisition had been pending.

Citing the corporation’s initiatives as violation of the guidelines, the ministry served notice asking explanation why the coal block allotment should not be cancelled. The CMDC have been asked to send the reply within 15 days.

A senior official with the corporation, on condition of anonimity, said that they were preparing a convincing reply that would be sent to the ministry within the deadline. “The delay in starting the work in the blocks was because of elections held one after the other in the state,” the official added.