Business & Economy

Coal Ministry to issue notices to firms on de-allocation of blocks

NetIndian News Network

New Delhi, September 8, 2010

The Coal Ministry today said it had decided to issue show cause notices to various coal companies for the de-allocation of 93 coal and 4 lignite blocks because they had not made sincere efforts to develop them for the past several years.

An official press release said these coal companies had been issued several reminders in this regard in the past.

So far, the Government has allocated 207 coal blocks for the development of coal resources, it said.

The decision was taken at a high-level meeting recently held in the Ministry. Out of these 93 coal blocks, 45 belong to public sector companies while 48 belong to private sector companies. All the 4 lignite blocks belong to private sector companies.

In addition, 23 Government and private sector companies have been issued advisories to complete the process for the development of the blocks allotted to them at the earliest to avoid de-allocation of their blocks.

In view of the increasing demand for coal, the Government is making all efforts to enhance production through fast-track development of coal blocks. The de-allocation drive is part of this process, the release added.