Stung by the Coalgate controversy, a cautious Coal Ministry panel has issued show cause notices to 10 entities including the likes of Tata Steel, NTPC, Bhushan Steel and NTPC for unsatisfactory progress of dry fuel blocks given to them.
The Inter-Ministerial Group (IMG) led by Additional Secretary in the Coal Ministry AK Dubey which had reviewed 17 such blocks recently, has also sought explanation from seven other companies including Vedanta-owned BAlCO for slow progress in developing blocks allotted to them. The suggestions by the IMG come in the aftermath of the CBI probing various coal blocks that were scrutinised by the CAG last year and were alleged to have been issued on nomination basis without putting them out for auction.
According to sources, Coal Minister Sriprakash Jaiswal is likely to give his green signal to the IMG’s recommendations any time this week.
The panel placed 10 out of the total 17 block it reviewed, under Category I, where show cause notices are issued to allocatees for their failure to develop the blocks at all even after the expiry of the time frame given to them to do so, as per the information available with The Pioneer. Under this category, the IMG has issued show cause notices to State-owned NTPC for unsatisfactory progress in its Chatti Bariatu South coal block, while Tata Steel and Adhunik Thermal Energy ltd have jointly been issued show cause notices for failing to develop their Ganeshpur block.
State-run mining entity NMDC has been given the notice for two blocks namely Shahpur (East) and Shahpur (West). Bhushan Steel ltd, Jai Balaji Industries and Rashmi Cement ltd have jointly been issued show cause notice for unsatisfactory progress in their Andal East block. Other entities which have been issued show cause notices include Damodar Valley Corporation, Maharashtra State Mining Corporation, Jharkhand State Electricity Board and Utkal Coal ltd.
BAlCO has been asked to give an explanation for the slow progress in its Durgapur/Taraimar block. Apart from this explanation has also been sought from NTPC for poor development in its two blocks namely - Kerandari and Chatti Bariatu. Damodar Valley Corporation too has been asked to explain delay in progress in its Kagra Joydev coal block.
Entities which have been asked to explain reasons behind the slow progress of their coal blocks, are placed under Category II. The IMG had held meetings in October this year and had reviewed blocks after a gap of around a few months. last year in August and September, it had held a series of meetings in the aftermath of the Coalgate controversy and had suggested de-allocation of blocks belonging to various high profile companies. The Coal Ministry too had okayed its recommendations.
However several of them had challenged the Coal Ministry’s decision to de-allocate their blocks in courts and the matter in many cases is still subjudice.
The IMG is a recommendatory body whose suggestions are to be cleared by the Coal Ministry. Interestingly last year when it had suggested de-allocation of blocks belonging to some well known steel companies, the ministry had reportedly upturned its suggestion, which had created a lot of furore.