Wednesday, March 28, 2012

State Govts Requested to Form Monitoring Committees for Development of Coal Blocks

The responsibility of developing the coal block as per the prescribed guidelines and milestone chart attached with the allocation letter rests entirely with the allocattee company. In the terms and conditions of the allocation letters, it is categorically mentioned that in the event of willful delay in the development of coal blocks and in setting up of the end use project, the Govt. takes appropriate action to de-allocate the said block. Further, the allocatees have to submit Bank Guarantee which remains valid all the times till the production from the coal block reaches its peak rated capacity. The State Govts have been requested to form a Monitoring Committee headed by the Chief Secretary to facilitate expeditious development of coal/lignite blocks. The Coal Controller’s office monitors on regular basis the achievement of different milestones. Government periodically monitors and reviews the development of allocated blocks as well as end use plants by the allocattee companies in the Review Meetings. Wherever delays are noticed, Government issues show cause notices and advisories to such allocattees cautioning them to bring the coal blocks into production as per the guidelines/milestones chart. Based on the replies to the show cause notices, the Government takes decision on the de-allocation. A total of 25 coal blocks and 2 lignite blocks were de-allocated. 

 Out of 195 coal blocks, 29 coal blocks have started production. Further out of the 28 allocated lignite blocks, 12 lignite blocks have started production. The remaining coal blocks which have not started production so far, are in various stages of obtaining statutory clearances and mining lease, preparing mining plan, acquisition of land, procuring machinery and equipment etc. for both mining as well as end-use project. 

 This information was given by the Minister of State of Coal, Shri Pratik Prakashbapu Patil in written reply to a question in Lok Sabha today.

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