Government asks 3 firms to begin production from coal blocks allocated to them for captive use without further delay

The government today asked three firms, Tenughat Vidyut Nigam, Andhra Pradesh Power Generation Corp and Jharkhand State Mineral Development Corp, to begin production from coal blocks allocated to them for captive use without further delay."The allocatee is hereby warned and directed to develop the block without any delay," the warning letters sent to the firms said.

The coal ministry warned the firms that "any further failure in development of the block would lead to necessary action as per the terms and conditions, including deallocation of the coal block."

The Tadicherla-I coal block was allocated by the coal ministry in 2005 to Andhra Pradesh Power Generation Corporation to meet the coal requirement of a 500-MW unit of the Bhoopalpalli thermal power station.

In the case of Jharkhand State Mineral Development Corporation Ltd, a warning was issued for the inordinate delay in development of the Pindra-Debipur Khowatand block, while the notice sent to Tenughat Vidyut Nigam Ltd (TVNL) was in connection with the Rajbar E&D block. Both these blocks were allocated by the government in 2006.

A couple of days back, the government had also asked TVNL to begin production from the Badam coal block in Jharkhand and had warned that failure to do so could lead to its cancellation.

Last week, the Coal Ministry asked five firms, including Jindal Steel and Power Ltd and GVK Power, which have been sitting idle on coal blocks allocated to them for captive use, to either begin production or face cancellation of their licences.

Earlier, the government had said that a panel set up by it to look into the process of deallocation of coal blocks had recommended issuing warnings to 29 coal and three lignite blocks allocatees.

It also suggested cancellation of 14 coal blocks and one lignite block awarded to six PSUs, including NTPC and three private firms, for failing to develop the mines on time.

The government has so far this year cancelled coal blocks allocated to various firms, including NTPC, Damodar Valley Corporation and Andhra Pradesh Power Generation Corporation Ltd.