More de-allocations of coal blocks on the cards as the ministry issues warning letters

Subscribe to GoodReturns

More de-allocations of coal blocks on the cards
The Indian Coal Ministry is on a mission to bring the firms, who have been allocated coal and/or lignite blocks, in line. After deallocating 3 NTPC blocks last month, the ministry has issued official warning letters to the concerned firms asking them to get the development work at the sites done on time or be prepared for strict action, which might include de-allocation. The number of firms who have been issued such letters is believed to be seven that includes -- Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation, Tamil Nadu Electricity Board and Orissa Mining Corporation, and three others.

"The allocatee(s) is (are) hereby warned and directed to develop the block(s) immediately. Any further failure in development of the block(s) would lead to necessary actions as per the terms and conditions of allocation, including de-allocation," the warning letters said.

While the aforementioned four firms were warned about the proceedings at the Mandakini-B coal block that was jointly allocated to them, Orissa Mining Corporation has received a letter for the delayed progress at the Utkal-D coal block.

The ministry has been very active in this department since May when it set up a panel to look into the slow progress at the numbers allocated coal and lignite blocks, and suggest appropriate action. The said panel recommended warnings to 29 coal and 3 lignite blocks allocatees, and de-allocation of 14 coal blocks and 1 lignite blocks. The allocatees that suffered at the hands of the ministry include -NTPC, Damodar Valley Corporation and Andhra Pradesh Power Generation Corporation.

Read more about: power, coal, ntpc
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?