The Coal Ministry on Friday announced show cause notices are issued to a total of 16 companies for not ensuring timely coal production. In the list, metal giants Hindalco, JSW Steel, Vedanta, and NALCO are also included. The Centre expects 58 coal blocks to become operational by FY23 with an estimated production of 138.28 Million Tonnes.
As per the ministry, show cause notices are issued from time to time to the companies which are not adhering to the timelines prescribed in their agreements for timely operationalisation of coal blocks or for non-achievement of targeted coal production.
The ministry constituted a Scrutiny Committee to consider the show cause notices and replies received from allocattees on case to case basis and recommend penalties in cases the delays are attributable to the allocattees.
In the 17th meeting, the committee recently reviewed cases of 24 coal mines – and recommended a proportionate appropriation of Performance Security in four cases i.e Tenughat Vidyut Nigam Limited (Rajbar E&D), Topworth Urja & Metals Ltd. (Marki Mangli-I), Ultratech Cements Ltd (Bicharpur) and National Thermal Power Corporation Limited (Talaipalli) due to delay on the part of allocattees.
“Recommendations of the Scrutiny Committee have been accepted by the Government and appropriation orders are being issued,” the ministry said.
Thereby, the committee further issued show-cause notices to 16 companies for 22 coal blocks.
The 16 companies are – Hindalco Industries, National Thermal Power Corp (3 blocks), JSW Steel, Trimula Industries, Damodar valley corporation, West Bengal Power Development Corporation, Topworth Urja, and Metals, B.S. Ispat, Indrajit Power, Birla Corp (2 blocks), Sunflag Iron and Steel Company, Karnataka Power Corporation (2 blocks), Power plus Traders, Vedanta (3 blocks), National Aluminium Company, and EMIL Mines and Mineral Resources.
Additionally, review meetings are also being held by the ministry with the block allocattees and the respective State / Central agencies like MoEF&CC, State Mining Departments, State Revenue Departments, State Forest Departments, etc. for early operationalization of the blocks and to enhance the production from operational blocks.
Also, a Project Management Unit has been appointed by Ministry for handholding of allocattees in obtaining the statutory clearances for early operationalization 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 FY22 with 47 operational coal blocks.
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