JSW Steel, Vedanta, others issued show cause notices for delays in coal production

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 coal ministry said.

New Delhi:The Union Ministry of Coal has issued show-cause notices to 16 companies, which operate 22 coal blocks for not ensuring timely coal production amid the power crisis in the country.

The Scrutiny Committee, in its 17th meeting held recently, has 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, the Ministry of Coal said in a statement.

Recommendations of the Scrutiny Committee have been accepted by the Government and appropriation orders are being issued, it said. "Subsequent to the meeting of the Scrutiny Committee, further show cause notices were issued to 16 companies for 22 coal blocks," the ministry said. A Scrutiny Committee has been constituted by the Ministry of Coal 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.

The companies that have been served the show cause notices include Hindalco Industries Limited, National Thermal Power Corporation Limited (3 blocks), JSW Steel Limited, Trimula Industries Limited, Damodar Valley Corporation, West Bengal Power Development Corporation, Topworth Urja and Metals Ltd, BS Ispat Limited, Indrajit Power Private Ltd, Birla Corp Ltd (2 blocks), Sunflag Iron and Steel Company Limited, Karnataka Power Corporation Ltd (2 blocks), Power plus Traders Pvt Ltd, Vedanta Limited (3 blocks), National Aluminium Company Limited and EMIL Mines and Mineral Resources Limited.

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 said. In addition to the regular follow up, review meetings are also being held by the Ministry of Coal with the blocks allocattees and the respective State / Central agencies like MoEF&CC, State Mining Departments, State Revenue Departments, State Forest Departments, etc for early operationalisation of the blocks and to enhance the production from operational blocks.

A Project Management Unit has also been appointed by the Ministry for handholding of allocattees in obtaining the statutory clearances for early operationalisation of coal blocks. The Ministry of Coal has allocated coal blocks for captive end use and sale of coal / commercial mining. 85.32 Million Tonnes of coal has been produced in FY-2021-22 from the 47 operational coal blocks.

As against the scheduled production of 203.67 Million Tonnes for the FY 2022-23, it is expected that a total 58 coal blocks would become operational with an expected production of around 138.28 Million Tonnes, the ministry said.