Coal block allocations

About 53 captive coal block allocations face trouble for not sticking to the government's timeline to start production. “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 end-use projects, the government will take appropriate action to de-allocate the blocks,” a top coal ministry official said.
Any cancellation at a time when the opposition has stalled Parliament and is hammering the PM and other Congress leaders over the CAG report could be cited by the government to counter charges of corruption and crony-capitalism. An inter-ministerial group of officials, set up in June to monitor the progress of captive coal mines is likely to meet next week to examine the promoters’ side of the story and recommend the course of action.
“The coal ministry had served notice for de-allocation on the ground of delays in developing them. The replies from the allottees have been under scrutiny for some three months. The inter-ministerial group has held two meetings. Another meeting is likely next week and the final decision may be known only then,” the top coal ministry official said.
Industry sources said there were cases where companies may have failed to move on developing the blocks. They, however, said there were several cases where the companies were hamstrung by delays in environmental and other clearances or law and order problems.