IMG may issue showcause notices to 40 coal mines for production delay

New Delhi: Intensifying the drive against firms sitting idle on allotted coal blocks, an inter-ministerial group has recommended issuing show cause notices to companies including JSPL, HZL and Ultratech for delaying production from around 40 mines given for captive use.

“The IMG which reviewed the progress of 56 coal blocks recommended issuing show cause notices to around 40 coal blocks allotees,” a source close to the development said.

The show cause notices were recommended for, among others, Gare Palma IV/6 coal block alloted to Jindal Steel and Power Ltd (JSPL) and Nalwa Sponge Iron Ltd, Madanpur North coal block alloted to Madanpur North Coal Company—JVC (Joint Venture Company) of Ultratech Ltd and others, Madanpur South mine alloted to Madanpur South Coal Company—JVC of Hindustan Zinc Ltd (HZL) and others.

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During the meeting held yesterday, the Inter-Ministerial Group (IMG) also recommended issuing show cause notice to Nakia I and Nakia II coal block alloted to Chhattisgarh Captive Coal Company and Morga -IV block alloted to Madhya Pradesh State Mining Corporation Ltd, among others.

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After the approval of the recommendations, the Coal Ministry will begin issuing show cause notices to the firms, sources said.

Progress of these coal blocks was found to be unsatisfactory by the review committee last year where delays in production from the mines were attributed to the ‘go/no-go’ categorisation, location in wild life corridors, over-lapping of coal bearing area with CBM (Coal bed methane), among others, sources added.

After abolition of go/no-go concept, these coal blocks allocatees were advised to pursue their cases with concerned authorities for environment/forest clearances, sources said.

Earlier this month, the Coal Ministry issued notices to allocatees of 30 captive coal blocks, including NTPC, GVK Power and Monnet Ispat for failing to develop the blocks on time.

PTI