Govt slaps notice,seeks explanation from NTPC for mine delays

The Coal Ministry has issued a show-cause notice to NTPC for delay in production from Chatti Bariatu South coal block in Jharkhand and sought explanation from the power PSU for making slow progress in another mine in the state.

Almost a year ago the government had withdrawn the deallocation of three mines of NTPC, including Chatti Bariatu and Chatti Bariatu South coal blocks.

"You are hereby called upon to explain, on each milestone separately to this ministry within a period of 20 days from the date of issue, the reasons for slow progress as well as the efforts made by you in development of coal block (Chatti Bariatu), failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken," the Coal Ministry said in a letter addressed to NTPC Chairman and Managing Director

In another letter to the PSU, the Coal Ministry said: "Your are hereby called upon to show cause...as to why the delay in development of the coal block should not be held as violation of the terms and conditions of the allocation of Chatti Bariatu South coal block and why the coal block should not be deallocated."

The government had earlier written to NTPC informing it that the de-allocation of the company's three coal blocks in Jharkhand has been withdrawn.

In a letter dated January 23, 2013 to NTPC Chairman and Managing Director Arup Roy Choudhury, the Coal Ministry had said withdrawal "is subject to NTPC developing the block as per the revised schedule of exploitation submitted by it."

The nation's leading power producer was also asked to submit schedule regarding exploitation of coal blocks.

NTPC officials were not available for comments.