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Coal Ministry slaps notices on 14 firms for delays in mine devt

Firms include JSPL, Hindustan Zinc

Press Trust of India  |  New Delhi 

The Coal Ministry has slap-ped show-cause notices on 14 firms, including Jindal Steel & Power Ltd (JSPL) and Hindustan Zinc, for delay in the development of the coal mines allocated to them for captive use.

“You are hereby called upon to show cause, on each milestone separately to this ministry within period of 20 days from the date of issue of show cause notice as to why the delay in development of the coal block(s) should not be held as violation of terms and conditions of the allocation. And why the coal block should not be de-allocated,” the Coal Ministry said in the letters to the companies.

The ministry also asked companies like Chhattisgarh State Electricity Board, AES Chhattisgarh Energy Pvt

Ltd, JSPL and Nalwa Sponge Iron Ltd “to furnish a detai-led status note on the prog-ress of end use plant(s) (EUPs) for which the coal block was allocated.”

The 14 companies which were slapped with notices include JSPL and Nalwa Sponge for Gare Pelma 1Vô6 coal block, AES Chhattisgarh Energy for Sayang coal block, Madhya Pradesh State Mining Corp for Morga-I coal block and Hindustan Zinc for Madanpur (South) coal block, the ministry said.

“Keeping in view the unsatisfactory progress, the IMG (Inter-Ministerial Group) recommended to issue show cause notice for delay in development of coal block(s). The recommendation of the IMG has since been considered and accepted by the government,” the ministry said.

The ministry had recently issued notices to eight firms, including Adani Power, Jayaswal Neco, for delays in mine development.

The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation for delays in development of mines.

The panel under the chairmanship of Additional Secretary in the Coal Ministry comprises members from other ministries, including steel and power.

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First Published: Sun, December 22 2013. 22:31 IST