The government today issued show cause notices to 10 firms, including NTPC, DVC and Hindalco, asking as to why certain coal blocks alloted to them should not be withdrawn as they have failed to develop the reserves within the specified time.
The coal ministry has given the firms 30 days to explain the reasons for not developing 13 blocks allocated to them, and warned that failing their response the de-allocation process would be initiated for "violation of the terms and conditions."
So far the Ministry has served notices on 16 firms, as part of it's drive to weed out "non-serious" companies, sitting idle on captive coal blocks. Over a fortnight ago, the government had said it was in the process of issuing show-cause notices to 81 firms.
In two separate notices to National Thermal Power Corporation (NTPC) for "inordinate delay" in developing Pakri Barwadih, Jharkhand and Talaipalli, Chhattisgarh coal blocks, the ministry said they weren't developed despite the issue having been raised at the Prime Minister's level in January 2007.
NTPC said, meanwhile, that it has not received any such notice and it's block development activities are well in time.
"NTPC has not received any showcause notice from the Coal Ministry regarding the development of the coal block," its CMD Arup Roy Choudhury said.
"Pakri Barwadih was allotted in 2004. As per global standards, it takes 7-8 years to develop a coal mine, while in India it takes 17 years.
"NTPC has made all actions for commencement of coal production from Pakri Barwadih in 2012, that is, 7-8 years after its allotment. This can be considered fit as per international standards.
"Work on coal blocks allotted in 2006-07 are in various stages of development and will start production within 7-8 years from block development," he said.
According to the Coal Ministry, while Tallaipalli block was allocated to NTPC for 4,000 MW power projects to start production by the end of the March 2012, based on coal from this block, production from Pakri Barwadih was scheduled to start from 2008-09.
In another notice to Coal India subsidiary, Mahanadi Coalfields Ltd, Hindalco and Neyveli Lignite for Talabira-II coal block jointly allocated to them, the Ministry said "no serious effort" had been made by them for developing the same.
Aditya Aluminium, a Hindalco division was to feed coal to its about 700 MW power unit while Neyveli needed the coal from it for 2000 MW power project. An email query to Hindalco could not illicit immediate response.
Notice was served to Damodar Valley Corporation for inordinate delays in developing Barjora North and Khagra-Joydev for coal needs of Durgapur Steel Thermal Power Station and other power projects requirements. The explanation was sought within a period of 30 days.
Others who were served notices included Tenughat Vidyut Nigam Ltd, Orissa Mining Development Corporation, Chattishgarh State Electricity Board, Usha Martin Ltd and Shree Virangana Steels for failure to develop blocks.
The coal ministry noted that the companies have failed to acquire land, get necessary clearances, among others, for mining in stipulated time-frame. These companies could not be immediate contacted for comments.
In July, the ministry had convened a review meeting with the concerned companies, which have been allocated a total of 207 coal blocks for captive use of power, steel etc projects.
In the previous such drive, the government had deallocated 11 coal blocks. Jaiswal had earlier said the government would strive to weed out non-serious players from the business.