Cracking the whip on power firms and mining entities for not developing captive coal blocks on time, the government today said it will cancel the allotments if the companies failed to explore such assets despite all necessary approvals.
"We will first examine the reason behind such a delay. If after getting all the necessary approvals, the firm has not yet developed the blocks, their allotments will be cancelled," said Coal Minister Sriprakash Jaiswal.
Earlier this year, the ministry had reviewed the progress of work on the captive coal blocks allotted to the private and public sector companies between 2003 and 2007 and had decided to serve de-allocation notices on 14 coal properties.
Among the firms, which were issued show-cause notices include Tata Sponge, NCT Delhi, Monnet Ispat, Adhunik Group, electricity boards of Tamil Nadu and Jharkhand, power corporations of Maharashtra and Haryana, and mineral development corporations of Chhattisgarh, Assam and Meghalaya.
The coal ministry has so far allotted 196 captive coal blocks with a cumulative reserve of 51 billion tonnes. The blocks are exclusively meant to cater to the captive coal requirements of the allottees.
