60 Cos May Lose Licence for Going Slow on Coal Blocks

  • 05/03/2012

  • Economic Times (New Delhi)

Tata Power, Reliance Power, ArcelorMittal, Jindal Steel & Power and Monnet Ispat & Energy are among 60 companies that face the risk of cancellation of mining licences for being slow in exploration of coal blocks. A review committee, headed by coal ministry’s additional secretary Zohra Chatterjee, has recommended issuing ‘show-cause notices’ for 58 blocks seeking reasons why mining licences should not be revoked. A ministry official said appropriate action would be initiated against companies that are not able to justify the delay. “We are reviewing allotment to non-serious companies that are simply sitting on the blocks. Some allottees are yet to start any activities on the site. Some blocks are delayed due to problems in land acquisition, delayed regulatory clearances and local agitation and law & order issues,” said the official said. The companies include Hindalco Industries, Tata Sponge, Electro Steel Casting, MMTC, National Aluminium and power and mining utilities of Jharkhand, Orissa, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Tamil Nadu. The coal ministry’s latest review found that only 29 of 195 allotted coal blocks started production while progress at 90 blocks was found dissatisfactory as critical milestones like acquisition of land, forest clearances and execution of mining lease were not achieved for various reasons. Captive mines are expected to generate just about 36 million tonnes by this fiscal against a targeted 81 million tonnes, scaled down from 104 million tonnes after mid-term review by the Planning Commission. Caution notices will be issued to about 28 companies including NTPC, Steel Authority of India, Jai Prakash Associates, Jindal Steel & Power and GVK Power for slow progress at 32 blocks. The committee has also advised owners of another 58 blocks to follow up aggressively with the environment ministry for securing clearances. The committee also recommended de-allocation of two lignite blocks. The government has till date revoked mining licences for 23 captive coal blocks that were later allotted to Coal India. Two hundred and eighteen coal blocks have been allocated so far while 23 blocks have been de-allocated till December 2011. Twenty nine coal blocks have started coal production and nine coal blocks reached peak-rated capacity.