Showcause notices to 6 firms for delaying coal mines development

Taking ahead its drive against companies sitting idle on mines, the Coal Ministry has slapped showcause notices on six companies, including Essar Power and Rungta Mines, for delays in developing the blocks.

"You are hereby called upon to show cause, on each milestone separately to this Ministry within a period of 20 days...(as) to why the (delays in) development of the coal block(s) should not be held as violation of the term and conditions...and why the block (s) should not be deallocated," the coal ministry said in the letters dated December 16 to the the companies. The ministry further the progress of the mines were reviewed by the Inter-Ministerial Group (IMG) which recommended issue of show cause notice for delaying the development of the mines.

"The recommendation of the IMG has since been considered and accepted by the government," the ministry said.

Six firms which have been slapped notices are Jharkhand State Mineral Development Corp for Jogeswar and Khasjogeshwar coal blocks, Yamuna Coal Company for Mara II Mahan coal block, Essar Power Ltd for Chakla and  Ashok Karkata Central coal blocks, Jharkhand Integrated Power Ltd in respect of Kerandari 'B' and 'C' coal blocks, Rungta Mines Ltd for Bundu coal block and Madhya Pradesh State Mining Corp for Dongri Tal-II coal block.

The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation for delays in development of mines.

The panel under the chairmanship of Additional Secretary in the Coal Ministry comprises members from other ministries, including steel and power.