KOLKATA (miningweekly.com) - India’s Coal Ministry has cautioned the country’s largest steel producer Steel Authority of India Limited (SAIL) that coal blocks allocated to it would be withdrawn if the major failed to give a reasonable explanation for its failure to submit a completion notice pertaining to the allotment.
The Coal Ministry in a missive to SAIL warned that the agreement for allotment of the coal block would be terminated if the steel company did not explain why the process of taking over the coal block had not been completed within the timelines laid down in the agreement.
SAIL had been allocated the Parbatpur Central coal block in the eastern Indian province of Jharkhand, last year, under the preferential allotment route as per rules laid down in the Coal Mines Special Provisions Act.
According to a Ministry official, SAIL had been given 30 days to complete all formalities for taking over the coal block, which it failed to do, also failing to deposit the first instalment towards securing the block and not furnishing the required performance guarantee.
The steel producer had been given a further 20 days to provide a reply to show cause as to why the Coal Ministry should not presume that SAIL was not interested in the coal block and why the Ministry should not take appropriate action toward legal termination of the agreement allocating the asset to the steel company.
Edited by: Esmarie Iannucci
Creamer Media Senior Deputy Editor: Australasia
EMAIL THIS ARTICLE SAVE THIS ARTICLE
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
