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IPA Special

Sasan Power, 10 Others Showcaused For Delay In Coal Block Development

KOLKATA: As many as 11 companies including ADAG group company Sasan Power were slapped showcause notices by the coal ministry for delay in development of the captive coal blocks allotted to them.
The companies that were showcaused in separate letters includes Sasan Power, Hindalco, Tata Power Corp, DB Power Ltd, Electrotherm India, Grasim Industries, Field Mining & Ispat slapped, Monnet Ispat Ltd, Chhattisgarh Mineral Development Corp, Jharkhand State Mineral Development Corporation.
The letter shot to Sasan Ultra Mega says that the block was allotted to Sasan Ultra Mega Power Project will have to commence production within three years in case of open cast mining or four years in cae of underground mining.
The letter to the company said: “Any slippage would render this allocation liable for cancellation and withdrawal of block from the allocate. In order to expedite the development of the block, various review meetings were held with the representative of the company. At a meeting held in January 2012 it was noticed that the land acquisition is still pending which is delaying development of the project.”
In view of the delay, the coal ministry has asked the company to show case on each milestone it has missed separately to the ministry within the next 20 days as to why the delay in the development of the coal block should not be held as a violation of the terms and conditions of the allotment of the Moher and Moher Amlor extension coal blocks.
Rest of the companies were also issued similar show causes because they failed one or the other milestones in developing the blocks. Hindalco and Tata Power were show caused due to delay in development of the Tubed coal blocks. Coal ministry slapped showcause to DB Power Ltd for delay in development of Durgapur II / Sariya coal blocks.
ElectrothermIndiaand Grasim Industries gets showcause for delay in development of Bhaskarpara coal block. Field Mining & Ispat was slapped showcause for delay in development of Chinora and Warora Southern Part coal blocks. Monnet Ispat Ltd receives showcause for delay in development of the Utkal B2 block. Chhattisgarh Mineral Development Corp gets show cause from coal ministry for delay in dev of Shankarpur (Bhatgaon II) & extn coal while Jharkhand State Mineral Development Corporation receives show cause notice from coal ministry for Sugia Closed Mine block.

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