New Delhi:
The government has sent notices to 16 companies, including NTPC, JSW Steel, Hindalco, Vedanta and Nalco, about the cause of the show over delays in coal block exploitation.
Show cause messages are issued from time to time to companies that fail to adhere to the timelines prescribed in their agreements for making coal blocks operational in a timely manner or for failing to meet coal production targets.
“The review committee, at its 17th meeting recently held… recently reviewed cases from 24 coal mines…. Following the review committee meeting, further demonstrable cause announcements were made to 16 companies for 22 coal blocks,” the Coal said. the ministry in a statement.
While Vedanta and NTPC received notices of delays in production of three blocks each, Birla Corp Ltd and Karnataka Power Corporation Ltd received cause-cause notices for two blocks each.
Other companies that have received notifications include Damodar Valley Corporation, West Bengal Power Development Corporation, BS Ispat Ltd and Sunflag Iron and Steel Company Ltd.
The ministry has set up the review committee to review the show cause announcements and responses received from assignees on a case-by-case basis and recommend penalties in the event that the delays are attributable to the companies.
The panel “recommends proportional appropriation of performance security in four cases, namely 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).…” it added.
The panel’s recommendations have been accepted by the government and appropriation orders are being issued.
The Ministry of Coal further said it expects 58 coal blocks to become operational in the current fiscal year. The mines are likely to produce about 138.28 million tons of coal, against the planned production of 203.67 million tons.