Continuing its crackdown on companies idling on their coal blocks, the Coal Ministry has now trained it guns on state-run behemoth National Aluminium Company (Nalco) and APGENCO for doing virtually nothing on their coal blocks and warned of de-allocation of the blocks. Serving a show-cause notice to Nalco, a navratna company, the ministry accused it of showing a cavalier attitude in developing the block, while its management repeatedly skipped key meetings convened by the ministry to ascertain the progress of the allocated block. One such meeting, which was to be chaired by Coal Minister Sriprakash Jaiswal was also not attended by the PSU’s representatives.

“In the course of our own review meeting to assess the progress of the Utkal-E block (Orissa), we found that Nalco has not ensured forest clearance or secured the environment management plan or executed its mining lease. Besides, the review meeting has viewed the absence of the company in successive meetings seriously, despite the fact that the process is badly delayed and no serious effort has been made to develop the block,” the ministry observed in the notice.

As on date, 198 coal blocks with geological reserves of about 42 billion tonnes have been allocated to various public and private sector companies under the captive route, of which a few over 20 have commenced production.

The ministry is also upset with the Andhra Pradesh Power Generation Company (APGENCO) for failing to develop the Anesattapali, Punukulla Chilk and Penegadappa coal blocks. Following a review meeting held way back in March 26, 2008, the APGENCO management was told to furnish the bank guarantees and achieve the milestones to develop the blocks. It did furnish the bank guarantees, but failed in achieving the milestones.