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Procedural delays hold up production at coal blocks

Procedural delays are holding up coal production from blocks, including the operational ones, even as the government gets ready for the fourth phase of coal auction the 11 operational blocks auctioned out of a total 34, only seven have started operations so far, annoying block allotees who had made large upfront payments.

"Such government delays after the auction prove that the process was not thought through properly, or the government lacked resources to execute them in a timely manner," a block operator said on condition of anonymity. They alleged that the Centre issued transfer orders for blocks without taking states into confidence. In certain cases, states declined to acknowledge such communication, and many transfer orders were even flawed.

While on the one hand, production is being held up due to procedural delays, agreement signed with the government stipulates that delays in operationalisation of mines would lead to penalties. "Such procedural delays point towards a sheer lack of communication and coordination between the government entities," he said.

Also, operational mines have not yet been transferred to the new allottees despite being enabled in the Coal Mines (Special Provisions) Act, 2015.

Instead of transferring clearances and permissions, many state agencies are viewing them as fresh applications, delaying production by six months.

source: http://economictimes.indiatimes.com