New Delhi: The government on Thursday issued show cause notices to 30 companies, including JSPL, JSW, Bhushan Steel and TVNL, asking them to explain the reasons behind the delay in developing the mines. (Agencies)
"...you are hereby called upon to show cause...as to why the delay in development of coal block(s) should not be held as violation of the terms and conditions of the allotment of coal block(s),failing which...action...would be taken against your company(ies) for deallocation," the Coal Ministry said in the notices to the companies on its website.
Jindal Steel and Power Ltd (JSPL) was issued notice for Jitpur coal block in Jharkhand, JSW for Gourangdih ABC block in West Bengal, Bhushan Steel for New Patrapara block in Odisha and Tenughat Vidyut Nigam Ltd (TVNL) for Rajbar E&D in Jharkhand.
Other companies which were issued show cause notices include Andhra Pradesh Power Generation Corporation, CESC Ltd, Maharashtra Seamless Ltd, Gujarat Ambuja Cements and Domco Private Ltd among others.
On Tuesday, the coal ministry had issued show cause notices to 10 firms, including Reliance Power's Sasan, Tata Power, Hindalco and Grasim Industries for delays in developing coal blocks.
These firms were allocated blocks between 1999 and 2008 for development of captive mines for power generation.
The show cause notices were also been sent to public sector Jharkhand State Mineral Development Corporation and Chhattisgarh Mineral Development Corporation. Besides MP, the blocks are located in Jharkhand and Chhattisgarh.
Of the 218 blocks allocated, 25 have been taken back by the government.
While the coal-mining for commercial sale is a monopoly of the PSU Coal India, firms in power, steel and cement were given the coal blocks for captive use on the first-come- first-serve (FCFS) basis.
But most of them could not develop the blocks for various reasons ranging from problems in environment clearances and difficulties in land acquisition.
New Delhi: The government on Thursday issued show cause notices to 30 companies, including JSPL, JSW, Bhushan Steel and TVNL, asking them to explain the reasons behind the delay in developing the mines.