Centre failed to act against 114 firms: BJP

The BJP, which has been attacking the Prime Minister over allocation of coal blocks without auction, has levelled a fresh charge on the Centre.

The BJP, which has been attacking the Prime Minister over allocation of coal blocks without auction, has levelled a fresh charge on the Centre.

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The party has alleged that the government did not take action against 114 companies for not having started operations even after the gestation period to begin mining ended.

BJP MP Hansraj Ahir has written to the CAG complaining that 114 coal blocks should have been cancelled, or bank guarantees of the applicants seized, in May 2012.

"The government has allotted captive coal blocks to 149 private companies, of which 114 coal blocks have not been opened till date. The gestation period of these 114 companies has lapsed on May 25, 2012. The span of three and four years in case of non-forest land and additional six months in case of forest land has lapsed for 114 private companies," Ahir's latest letter to the CAG says.

Meanwhile, in the conditions of allotment for captive blocks the coal ministry website says: "Normative time limit ceilings have been provided to ensure that the coal production from the captive blocks shall commence within 36 months (42 months in case the area is in forest land) of the date of issue of letter of allocation in OC mine and in 48 months (54 months in case the area falls under forest land) from the date of said letter in UG mines."

The bank guarantee submitted by a company equals one year royalty amount as assessed on the basis of mine capacity, and the weighted average royalty within three months of the date of the letter of allocation.

The government has de-allocated 26 coal blocks - allotted both to PSUs and private firms - since 1993 in the view of delay in starting operations.