Peeved over the inordinate delay in the development of coal blocks- Utkal-C and Utkal B2- allocated to Utkal Coal Limited (UCL), a special purpose vehicle set by the Indian Metals and Ferro Alloys Limited (IMFA) and Monnet Ispat Limited respectively, the Ministry of Coal (MoC) has served show cause notices on these companies.
The Ministry, in its notice to both the companies dated September 21, has asked the two companies to file their replies within 30 days, explaining as to why the delay in the development of coal blocks should not be treated as violation of the terms and conditions of the allotment of the coal blocks If the companies fail to respond within the stipulated period, the ministry would presume that the companies have no explanation to offer and appropriate action would be initiated for the de-allocation of the coal blocks.
It may be noted that the Utkal-C coal block with a reserve of 130 million tonnes in Orissa's Angul district under the command area of Mahanadi Coalfields Limited (MCL) was allocated to UCL for supply of coal to its existing 108 MW Captive Power Plant (CPP) and two proposed additional CPPs.
In its letter, the MoC has observed that several review meetings were held with the company representatives from time to time to expedite the development of the coal block.
UCL in its letter dated October 7, 2008 had assured MoC that all formalities would be completed within March 31, 2009 and coal would be extracted from the block from July 1, 2009.
However, during the review meeting held on July 21 this year, the ministry observed that no serious efforts have been made by the company to develop the coal block even after repeated assurances. The ministry has further pointed out that the company is yet to achieve the forest clearance for the project even though it had applied for the same on November 29, 1999.
Also, coal production from the block which was scheduled to begin from November 2001 is yet to take off.
UCL suffered a delay of eight years and five months in completion of land acquisition and a delay of three years and one month in submission of the Mining Plan.
Similarly, in case of Monnet Ispat Limited which was allocated the Utkal B2 coal block also under the command area of MCL on October 16, 2009 for its 1.2 million tonne per annum sponge iron plant.
In the last review meeting on the project on July 21 this year, the MoC noticed that Monnet Ispat has not made any serious efforts to develop the coal block.
According to the data compiled by the ministry, the land acquisition is pending for the coal block project and the company is yet to obtain forest clearance for the project.
Moreover, the company had slipped by one year and five months in submission of Mining Plan and the grant of EMP (Environment Management Plan) clearance was delayed by five years and five months.
