Jindal Steel and Power Ltd has just 20 days to explain why it has failed to develop coal blocks allotted to it. If it fails to convince the government, it could be penalised, and forfeit its licence.
The coal ministry has served show-cause notices to JSPL and 13 other companies that had failed to develop their allocated coal blocks including Hindustan Zinc on December 20.
When contacted, a JSPL sokesperson said: “We have received the showcause notice. The end use project for this coal block has already been set up long time back. We have taken all the required steps for development of the coal block. We will send a suitable reply to the showcause notice.”
The government had formed an inter-ministerial group last year to review the progress of coal blocks allocated to companies for captive use and recommend action for delays in development of mines.
According to the letters sent to the 14 companies, the coal ministry has demanded to know “…why the delay in development of the coal block (s) should not be held as violation of terms and conditions of the allocation... And why the coal block should not be de-allocated.”
The companies that got notices include AES Chhattisgarh Energy Pvt Ltd for Sayang coal block, Madhya Pradesh State Mining Corp for Morga-I coal block and Hindustan Zinc for Madanpur (South) coal block.
The ministry has also asked companies “to furnish a detailed status note on the progress of end use plant(s) (EUPs) for which the coal block was allocated.”
The ministry recently issued notices to eight companies, including Adani Power, Jayaswal Neco, for delays in mine development.