Industry leaders to answer Coal Ministry on slow Coal block development, as Ministry takes strict actions over Coal Block development delays by the companies and issuing Show Cause notices. Coal Ministry is seeking answers from companies for failure of achieving targeted milestones on stipulated period.

Recently two companies Jindal Steel & Power Limited (JSPL) and Monnet Ispat & Energy Limited has lost its Urtan Coal blocks as Ministry of Coal has de-allocated the Coal blocks over companies’ irregularities on mine development.

Now again, Coal Ministry has issued show-cause to eight firms including Hindalco Industries and Mahanadi Coalfields, and sought explanation from five firms such as JSW Steel, Tata Steel and Power Finance Corp, for delays in commencing production from mines allocated to them.

Coal Ministry in show-cause notice to firms mentioned that, “You are hereby called upon to show cause, on each milestone separately to the ministry, as to why delay in the development of the Coal blocks should not be held as violation of terms and conditions of the allocation and why the block should not be de-allocated”.

The Ministry added in the notice, “if companies fail to give reasons for the delays, “it would be presumed that the company has no explanation to offer and action as appropriate would be taken against your company(ies) for de-allocation“.

The eight companies issued show-cause notices include Mahanadi Coalfields Limited, Hindalco Industries, Neyveli Lignite Corp for Talbira II and III Coal blocks. In the case of Talabira Coal block in Odisha, CBI had lodged a case in October, against industrialist Kumar Mangalam Birla and former Coal Secretary P C Parekh for alleged irregularities in allocation of mine eight years back.

The notice has also been issued to Ispat Godavari, Ind-Agro Synergy, Nakoda Ispat, Vandana Global, Shree Bajrang Power & Ispat for delaying the production from Nakia I & II Coal blocks.

JSW Steel, Bhushan Power and Steel, Jaibalaji Industries, Tata Steel and Power Finance Corp, have been asked by the Coal ministry in letter “You are hereby called upon to explain the reasons for slow progress as well as the efforts made by you in development of Coal block (s) failing which it would be presumed that your company(ies) has no explanation to offer and action as appropriate would be taken.”

The ministry sought explanation from JSW Steel , Bhushan Power and Steel, Jaibalaji Industries for slow progress in respect of Rohne Coal block, Tata Steel for Kotre—Basantpur and Pachmo Coal blocks and Power Finance Corp for Meenakshi, Meenakshi and Dipside Meenakshi Coal blocks.