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Govt issues show cause notices to Hindalco, JSW Steel, Vedanta and others for delays in coal production

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Govt issues show cause notices to Hindalco, JSW Steel, Vedanta and others for delays in coal production

The Coal Ministry announced on Friday that 16 enterprises have been handed show cause letters for failing to ensure timely coal output. Metal behemoths Hindalco, JSW Steel, Vedanta, and NALCO are also on the list. By FY23, the Centre expects 58 coal blocks to be operational, with a total production capacity of 138.28 million tonnes.

According to the ministry, enterprises that do not adhere to the timetables stipulated in their agreements for timely operationalisation of coal blocks or non-achievement of targeted coal production are handed show cause notes from time to time.

The ministry formed a Scrutiny Committee to review show cause notifications and responses received from allocattees on a case-by-case basis and suggest sanctions in circumstances where the delays are due to the allocattees.

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Due to allocattee delays, the committee recently reviewed cases of 24 coal mines and recommended a proportionate appropriation of Performance Security in four cases, namely Tenughat Vidyut Nigam Limited (Rajbar E&D), Topworth Urja & Metals Ltd. (Marki Mangli-I), Ultratech Cements Ltd (Bicharpur), and National Thermal Power Corporation Limited (Talaipalli).

“The Government has accepted the Scrutiny Committee’s recommendations, and appropriation instructions are being issued,” the ministry said.

The committee also issued show-cause notices to 16 businesses for 22 coal blocks as a result of this.

Hindalco Industries, National Thermal Power Corporation (3 blocks), JSW Steel, Trimula Industries, Damodar Valley Corporation, West Bengal Power Development Corporation, Topworth Urja and Metals, B.S. Ispat, Indrajit Power, Birla Corp (2 blocks), Sunflag Iron and Steel Company, Karnataka Power Corporation (2 blocks), Power plus Traders, Vedanta (3 blocks), National Aluminium Company, and EMIL Mines and Mineral Resources are among the 16 companies.

In addition, the ministry is holding review meetings with block allocattees and their respective State / Central agencies, such as MoEF&CC, State Mining Departments, State Revenue Departments, State Forest Departments, and so on, in order to expedite block operationalization and increase production from operational blocks.

A Project Management Unit has also been established by the Ministry to assist allocattees in securing legislative permissions for early coal block operationalization.

The government has set aside coal blocks for captive end-use and commercial coal mining.

With 47 active coal blocks, a total of 85.32 million tonnes of coal was produced in FY22.

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