Government issues show cause notices to Hindalco, Jsw Steel, Vedanta and others for delays in coal production
The Coal Ministry announced on Friday that show cause notices were being issued to a total of 16 companies for failing to ensure timely coal production. In the list, metal giants Hindalco, JSW Steel, Vedanta and NALCO are also included. The Center expects 58 coal blocks to become operational by FY23 with an estimated production of 138.28 million tonnes.
According to the ministry, show cause notices are issued from time to time to companies that do not meet the deadlines prescribed in their agreements for the timely operationalization of coal blocks or for failure to achieve targeted coal production.
The ministry has established a review committee to review show cause notices and responses received from recipients on a case-by-case basis and to recommend sanctions in cases where delays are attributable to recipients.
At the 17th meeting, the committee recently reviewed the cases of 24 coal mines – and recommended proportional appropriation of the performance guarantee in four cases, namely Tenughat Vidyut Nigam Limited (Rajbar E&D), Topworth Urja & Metals Ltd . (Marki Mangli-I), Ultratech Cements Ltd (Bicharpur) and National Thermal Power Corporation Limited (Talaipalli) due to delay from the beneficiaries.
“The recommendations of the review committee have been accepted by the government and appropriation orders are being issued,” the ministry said.
Thus, the committee also issued show cause notices to 16 companies for 22 blocks of coal.
The 16 companies are – Hindalco Industries, National Thermal Power Corp (3 blocks), JSW Steel, Trimula Industries, Damodar valley corporation, West Bengal Power Development Corporation, Topworth Urja and Metals, BS Ispat, Indrajit Power, Birla Corp (2 blocks) , Sunflag Iron and Steel Company, Karnataka Power Corporation (2 blocks), Power plus Traders, Vedanta (3 blocks), National Aluminum Company and EMIL Mines and Mineral Resources.
In addition, review meetings are also organized by the ministry with block allocators and respective state/central agencies such as MoEF&CC, State Mining Departments, State Revenue Departments, Forestry Departments of state, etc. for the early operationalization of the blocks and to improve production. operational blocks.
In addition, a project management unit has been appointed by the ministry to assist grantees in obtaining statutory permissions for the early operationalization of coal blocks.
The government has allocated coal blocks for captive end use and coal sales/commercial mining.
A total of 85.32 million tonnes of coal was produced in FY22 with 47 coal blocks operational.