Showcause notice to JSPL on Utkal B-1 coal block

Ministry has allowed JSPL a period of 20 days to respond to showcause notice failing which the coal block would stand deallocated

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The Ministry of Coal (MoC) has issued showcause notice to Jindal Steel & Power Ltd (JSPL) for delay and unsatisfactory progress in development of Utkal B1 coal block in coal rich Chhendipada area in Angul district.

The ministry has allowed JSPL a period of 20 days to respond to the showcause notice failing which the coal block would stand de-allocated. The showcause notice has been served on the company on the basis of recommendations of an inter-ministerial group (IMG) mandated to oversee progress of allocated coal blocks and associated end-use projects and recommend action, including de-allocation if required.

The IMG noted that no significant progress has been made by the company towards development of the coal block with critical milestones like land acquisition, grant of mining lease and application of mine opening permission still pending.

The showcause notice to JSPL follows a caution letter issued earlier to the company on April 26, 2012, to expedite development of the coal block and to remain careful in the future with respect to milestones stipulated.

The issue of caution letter was preceded by the last review meeting on the coal block held on January 11-12, 2012 wherein progress of the block was found to be unsatisfactory.

The Utkal B1 coal block was allocated to JSPL on September 29, 2003 under provisions contained in Section 3 (3) (a) of Coal Mines Nationalization Act-1973. As per the allocation letter, development of the coal mine was to be completed in 75 months.