 "Coal Ministry slaps show cause notice on GMR for payment delay")
The successful bidder is required to make monthly payments within 20 calendar days of expiry of each month with respect to coal extracted from the coal mine in such calendar month.
In a letter dated March 11 to the Chairman of GMR Chhattisgarh, the Ministry said there was a delay in payment for the months of August 2015 and January 2016.
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"In view of the above, you are hereby called upon to show cause within seven days of receipt of this notice why action... Shall not be taken against GMR Chhattisgarh Ltd," the ministry said.
The company had won the mine having extractable reserves of 28.77 million tonnes in auction held last year.
GMR had pipped Adani Power, Essar Power, Sesa Sterlite and others by bidding Rs 478 per tonne to get the mine in the auctions.
The government had also served a show cause notice to power major CESC for delaying payment with regards to Sarisatolli coal mine in Bengal.
CESC had also bagged Sarisatolli mine in auctions.
The company is engaged in generation and distribution of electricity and does not operate in any reportable segment.