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Coal Ministry to issue show-cause notices to 30 captive mine allottees in June

28 May 2013 Evaluate

To make sure that allotted blocks do not remain unproductive for long, the Coal Ministry will start issuing show-cause notices next month to 30 captive mine allottees for delay in development of their respective blocks, which include NTPC, SAIL, Jindal Steel and Power and Tata Steel. The decision was taken at an inter-ministerial group (IMG) meeting this month.

This crackdown mainly comes on the backdrop of country’s top auditor CAG in its report last year estimating undue benefits to the tune of Rs 1.86 lakh crore to private players on account of coal blocks allocation to them without resorting to auction.

In response to the notices, developers would be given up to a month's time to respond as to why their blocks should not get cancelled owing to delays in the development of their respective blocks. Of the 30 blocks, four blocks belong to Jindal Steel and Power's Utkal B1, Ramchandi Promotional Block, Amarkunda Murgadangal and Urtan North (jointly with Monnet Ispat and Energy).

Pakri Barwadih and Talaipalli blocks allocated to NTPC and North of Akrapal block given to Tata Steel for coal-to-liquid project also come in the list. Besides, three blocks - Brinda, Sasai and Meral - of Abhijeet Infrastructure, one block - Sitanala of SAIL, one block - Tokisud North of GVK Power - Goindwal Sahib would also be issued notices.

The government earlier too in a similar exercise, had issued show cause notices to 58 coal block allottees and de-allocated blocks of some developers. It also deducted bank guarantees for some others

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