The Ministry of Coal expects the operationalisation of 58 coal blocks in 2022-23 and has set a target of 138.28 million tonnes (mt) of coal production.

The Ministry has allocated coal blocks for captive end-use and sale of coal for commercial mining. About 85.32 mt of coal had been produced in FY21-22 from 47 operational coal blocks against the scheduled production of 203.67 mt for FY22-23. Overall, 58 coal blocks would become operational with an expected production capacity of around 138.28 mt.

The Ministry said that show-cause notices are issued from time to time to companies which are not adhering to the deadlines as per the agreements for operationalisation of coal blocks or non-achievement of targeted coal production.

A Scrutiny Committee has been constituted by the Ministry to consider the show-cause received from allottees on a case-to-case basis and recommend penalties for delays attributable to the allottees.

The Scrutiny Committee reviewed 24 cases and recommended a proportionate appropriation of performance security in four cases, including Tenughat Vidyut Nigam Limited, Topworth Urja & Metals Limited, Ultratech Cements Limited, and National Thermal Power Corporation Limited (NTPC), due to delays.

According to a statement, the government has accepted the recommendations of the Scrutiny Committee and issued appropriation orders.

After the Scrutiny Committee meeting, show-cause notices were been issued to 16 companies for 22 coal blocks.

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