Vedanta, Hindalco among 16 firms issued show cause notices for not ensuring timely coal production

The Ministry of Coal on Friday issued show-cause notices to 16 companies, which operate 22 coal blocks for not ensuring timely coal production amid power crisis in the country. The ministry had allocated coal blocks to the firm for captive end-use, sale of coal and commercial mining. 

According to the official statement, a 'Scrutiny Committee' has been constituted to consider the show cause notices and replies received from allocattees on case-to-case basis and recommend penalty in cases the delays are attributable to the firms.

"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,' noted the ministry in an official statement. 

In its 17th meeting, Scrutiny Committee has reviewed cases of 24 coal mines - and recommended 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.   

After the meeting, further show-cause notices were issued to 16 companies for 22 coal blocks. These were - 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; B.S. 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; EMIL Mines and Mineral Resources Limited.

"In addition to the regular follow up, review meetings are also being held by the coal 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 operationalization of the blocks and to enhance the production from operational blocks." read the statement. 

The coal ministry has appointed a Project Management Unit for handholding of allocattees in obtaining the statutory clearances for early operationalisation of coal blocks.

Meanwhile, the Ministry also stated that it expects total 58 coal blocks would become operational during FY23 with an expected production of around 138.28 Million Tonnes (MT).  

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