It also sought explanation from three companies, including Balco, for delays in development of mines allocated to them for captive use.
The Coal Ministry has slapped show cause notices on 13 firms, including AMR Iron and Steel, JLD Yavatmal Energy and NMDC while seeking explanation from three companies, including Balco, for delays in development of mines allocated to them for captive use.
“You are hereby called upon to show cause on each milestone separately to this Ministry...as to why delay in development of coal block(s) should not be held as violation of the terms and conditions of the allocation,” the Coal Ministry said in the show cause notice letter to the firms.
The Ministry also cautioned that if the companies failed to do so, “it would be presumed that your company(ies) has (have) no explanation to offer and action as appropriate would be taken against your company(ies) for de-allocation,” it said.
The CBI had last year registered FIR against AMR Iron and Steel Pvt Ltd and JLD Yavatmal Energy in connection with the alleged graft in allocation of coal blocks.
While the AMR Iron and Steel Pvt Ltd has been slapped a notice for delaying the production of Bander coal block (in Maharashtra), JLD Yavatmal Energy Ltd has been issued notice for Fatehpur East coal block (Chhattisgarh).
The other companies issued show cause notices by the ministries includes, National Mineral Development Corp (NMDC) in respect of Sahapur East and Sahapur West coal blocks (in Madhya Pradesh) and Kamal Sponge Steel & Power Ltd and Revati Cement Pvt Ltd in respect of Thesgora—B/Rudrapuri coal block (also in Madhya Pradesh).
The Ministry has also sought explanation from three firms——Bharat Aluminium Company Ltd (Balco), Madhya Pradesh State Mining Corp and Goa Industrial Development Corp——for slow progress of blocks allocated to them.
“You are hereby called upon to explain, on each milestone separately to this ministry within a period of 20 days from the date of issue of this letter, the reasons for slow progress as well as efforts made by you in development of the coal block(s), failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken,” the Ministry said in the letter to companies.