Govt issues show cause notices to 16 firms for delay in coal production

The Coal Ministry on Friday announced to issue show cause notices to a total of 16 companies for not ensuring timely production of coal. The list also includes metal giants Hindalco, JSW Steel, Vedanta and Nalco. The Center expects 58 coal blocks to be commissioned by FY23 with an estimated production of 138.28 million tonnes.

According to the ministry, show cause notices are issued from time to time to those companies which are not adhering to the time limit stipulated in their agreements to operate on time. Coal For non-realization of block or targeted coal production.

The Ministry constituted an Inquiry Committee to consider the show cause notices and replies received from the allottees on a case to case basis and recommend penalties in those cases which are responsible for allotment.

In the 17th meeting, the committee reviewed the recent 24 coal mines cases – and four cases viz. Tenughat Vidyut Nigam Limited (Rajbar E&D), Topworth Urja & Metals Limited (Markey Mangli-I), Ultratech for performance safety. Proportionate appropriation recommended. Due to delay on the part of allottees to Cements Limited (Bicharpur) and National Thermal Power Corporation Limited (Talaipalli).

“The recommendations of the inquiry committee have been accepted by the government and appropriation orders are being issued,” the ministry said.

Due to which the committee issued show cause notices to 16 companies for 22 coal blocks.

The 16 companies are – Hindalco Industries, National Thermal Power Corp (3 Block), JSW Steel, Trimula Industries, Damodar Valley Corporation, West Bengal Power Development Corporation, Topworth Urja & Metals, BS Ispat, Indrajit Power, Birla Corp (2 Block) , Sunflag Iron and Steel Company, Karnataka Power Corporation (2 Block), Power Plus Traders, Vedanta (3 Block), National Aluminum Company and EMIL Mines and Mineral Resources.

In addition, review meetings are also being conducted by the Ministry with the block allottees and concerned State/Central agencies like MoEF&CC, State Mining Departments, State Revenue Departments, State Forest Departments etc. for speedy operation of the blocks and scaling up the production. from operational blocks.

Also, a Project Management Unit has been appointed by the Ministry to assist the allottees in obtaining statutory clearances for expeditious operation of coal blocks.

The government has allocated coal blocks for captive end-use and sale of coal/commercial mining.

A total of 85.32 million tonnes of coal has been produced in FY 2012 with 47 operational coal blocks.

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