12 firms get notices for keeping coal blocks unused

12 firms get notices for keeping coal blocks unused

The Coal Ministry on Monday issued fresh show-cause notices to 12 firms, including the largest power producer NTPC and steelmaker SAIL, asking them to explain the delay in developing the coal blocks allocated to them.

The ministry warned them that the coal blocks could be de-allocated if the companies failed to take action on the issue by June 30.

TVNL, Damodar Valley Corporation, Bhushan Steel and Power, West Bengal Power Development Corporation and Madhya Pradesh and Maharashtra State Mining Corporations are other companies to receive notices.

“Why the delay in the development of the coal block should not be held as violation of the terms and conditions of the allotment,” the ministry asked in the notices served on the firms.
The notice is part of the ministry’s effort to ensure the blocks allocated to various companies do not remain unproductive.

A CAG report last year had estimated likely financial gains to the tune of Rs 1.86 lakh crore to private firms which were allocated coal blocks without auction. Last year, in a similar exercise, the government had issued show-cause notices to 58 coal block allottees and de-allocated blocks of some developers. It also deducted bank guarantees for some others.

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