Govt issues notice to NSL Nagapatnam Power for coal block

NEW DELHI: The government today said it has issued show-cause notice to NSL Nagapatnam Power and Infratech Pvt Limited, asking it to explain why the coal block allocated to it should not be taken back after its failure to develop the reserves within the stipulated time.

In a notice to NSL Nagapatnam Power and Infratech, Coal Ministry said that the firm has repeatedly failed to keep its promises and is thus "non-serious about timely development of the block."

The ministry gave the firm 30 days to explain why coal block alloted to it was not developed. It also warned that in case of the company's failure to respond in a month's time, the de-allocation process would be initiated.

NSL Nagapatnam Power and Infratech were issued notice for failing to develop Metra Road Lignite block allocated to it to meet the lignite requirement of about 1.77 million tonnes per annum for its lignite based power plant in Rajasthan.

However, the firm officials could not be reached for comments.

The ministry has so far served notices to over 50 firms for delays in developing blocks.

The government in September had said that it was in the process of issuing show-cause notices to as many as 81 firms for violation of terms and conditions of the coal block developments.

In July, the ministry had convened a review meeting with the concerned companies, which have been allocated a total of 207 coal blocks for captive use under power, cement and steel projects. In the earlier such drive, the government had de-allocated 11 coal blocks.