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Action against coal cos for missing timely production

Coal Ministry issued an amnesty scheme in May 2022 granting one-time window to allottee govt cos to surrender non-operational coal mines without penalty. Photo: Bloomberg Premium
Coal Ministry issued an amnesty scheme in May 2022 granting one-time window to allottee govt cos to surrender non-operational coal mines without penalty. Photo: Bloomberg 

  • The strict action follows the need to raise production of coal as its shortage earlier this year resulted in the country facing severe power crisis with thermal power plants cutting down generation despite higher demand

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Government is going tough on companies who have taken allocation of coal blocks but have failed to bring it under production within specified period of time. 

The strict action follows the need to raise production of coal as its shortage earlier this year resulted in the country facing severe power crisis with thermal power plants cutting down generation despite higher demand. 

Replying to a question in Rajya Sabha on Monday, minister of coal and mines Pralhad Joshi said that following delay in operationalising coal blocks and missing production targets, the mines of companies including NTPC limited, West Bengal Power Development and Monnet Ispat have already been terminated while GMR Chhatisgarh, too, has been sent termination order but matter is subjudice as a legal challenge has been mounted. 

In addition to termination of allocation, 10 companies have been penalised with Bank Guarantee Deductions including NTPC, Hindalco, SAIL, Tata Steel, Jaypee Cement, Patratu Vidyut Utpadan, UP Rajya Vidyut Utpadan. 

Moreover, the minister informed that 107 show-cause notices have been issued to companies including Vedanta, Hindalco, Ambuja Cement, JSW Steel and many state power corporations for not adhering to the timeline. 

Further, Coal Ministry issued an amnesty scheme in May 2022 granting one-time window to allottee Govt Cos to surrender non-operational coal mines without penalty. 

Joshi said that till date, coal ministry has received request for surrender for 11 coal blocks from 3 Central PSUs and 5 State PSUs after issuance of policy. Also, 

The ministry has received request for surrender for 11 coal blocks from 3 Central PSUs and 5 State PSUs after issuance of policy. 

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