Coal news and updates

MoC show-causes JSPL over lack of coal block progress

December 23: The calendar year does not seem to be ending on a cheerful note for Jindal Steel & Power (JSPL).

Close on the heels of the de-allocation of the Urtan North block awarded to it and Monnet Ispat & Energy, the Ministry of Coal (MoC) has now show caused the company over the delay in the development of the Gare Pelma IV/6 coal block, which had been jointly awarded to it and Nalwa Sponge & Iron.

After having already show-caused 9 companies in December alone for their tardy progress in developing the coal mines allocated to them, the MoC has cracked the whip on a further clutch of five entities.

These also include Chhattisgarh Energy over its Sayan coal block, Chhattisgarh State Electricity Board with regard to the Gidhmuri and Patoria coal blocks, the joint allocates of Hindustan Zinc, Chhattisgarh Steel & Power and MSP Steel & Power for the Madanpur (South) block, Madhya Pradesh State Mining Corporation with regard to the Morga I coal block and Mid-east Integrated Steels for Tandsi III and Tandsi III Extn.

The government had announced the de-allocation of the Urtan North coal block given to Jindal Steel & Power (JSPL) and Monnet Ispat & Energy and deduction and encashment of the proportionate amount of bank guarantee as well.

Madhya Pradesh State Mining Corporation has already been show-caused over Dongri-Tal II.

The Inter-Ministerial Group (IMG) set up by the government, in June this financial year, had noted the milestone these companies had not been able to fulfil and also that they had made no significant progress in developing the blocks concerned and for which it had recommended show-cause notices, which have subsequently been considered and accepted by the government.

These companies have been given 20 days from the date of the issue of the show cause (December 20, 2013) to show causes for the tardy progress in developing their respective coal blocks.