The coal ministry has issued a showcause notice to Gujarat Mineral Development Corporation (GMDC) for delay in developing the Naini and Morga II coal blocks alloted to the state PSU in 2006.
The Union government had alloted Morga II block in Chhattisgarh to GMDC, while Naini block in Orissa was alloted to it jointly with Pondicherry Industrial Promotion Development and Investment Corporation (PIPDICL).
In the notice, the coal ministry has observed that no serious effort has been made by GMDC and PIPDICL to develop the coal blocks and overall progress was not satisfactory.
In case of Morga II block, GMDC had not submitted detailed exploration plan within three months of allotment of the block.
In case of Naini block, subsequent to the allotment of the block, GMDC and PIPDICL were required to form a joint venture (JV) for carrying out exploration and mining activities in the block.
However, till date, the ministry has noted, no such JV has been formed and both the corporations wanted to carry out mining separately.