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Hold 2nd & 3rd instalment of upfront payment till mining lease is signed
With a view to ensure all round growth of coal sector in India, apex industry body ASSOCHAM has urged the Ministry of Power to urgently resolve all issues vis-vis auctioned coal blocks including the delay in clearance by central and state governments and delay in release of mine infra compensation.Even after six months of coal block auctions, production of coal has not started as clearances have not been accorded by central and state governments thereby hampering the cash flow in steel, power, aluminium, cement and other sectors, highlighted The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication addressed to Coal and Power Minister, Mr Piyush Goyal.
ASSOCHAM has also appealed for urgent release of mine infra compensation to the successful coal bidders as the delay in the same has further impacted the companies' already depleted balance sheet.
Industry is facing acute fund problem as till now neither mine is operational nor the prior allocates have received mine infra compensation, said Mr D.S. Rawat, secretary general of ASSOCHAM.
Further, in view of the tight liquidity crunch and with NPA-wary banks reluctant to fund mine development, ASSOCHAM has requested the Power Ministry to hold the 2nd and 3rd instalment of upfront payment till the mining lease is signed.
Highlighting that a provision of making payment after signing of mining lease is already there in the schedule III mines category, ASSOCHAM has advocated for granting a similar relief for schedule II mines.
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