Guidelines for Timely Development of Coal Blocks
Ministry of Coal has drafted guidelines for timely development of allotted coal blocks so that these can be brought in the coal production as early as possible. Allottees are advised to adhere timeline strictly. Otherwise Ministry may also take suitable action for delay including deallocation of blocks.
The following mechanism has been prepared to monitor the development of coal blocks as per the milestone chart devised and given with the allocation letters:
- Monitoring of progress of allocated coal blocks is done through a Committee under the Chairmanship of Additional Secretary (Coal). The review is undertaken on half-yearly basis with all the coal block allocatees to assess the development/progress achieved by them. Action is taken again the companies where delay is found on their part by issuing necessary advisory and show cause notices. In case of willful delays on the part of allocattees, appropriate action is initiated for de-allocation of the block & deduction of Bank Guarantee.
- The Coal Controller Organisation also closely monitors the development of coal blocks. For this purpose, he obtains a quarterly report from the block allocatees. Based on which a comprehensive status report is prepared.
- The allocatee is required to submit a bank guarantee equivalent to one year’s royalty amount payable based on the final peak/rated capacity of the mine and the weighted average royalty. Delay in development of the block and delay in achieving the rated yearly production level as per the approved mine plan bank guarantee as per the conditions incorporated in the allocation letter is deducted. Upon exhaustion of bank guarantee amount, the block is liable to de-allocation/ cancellation of mining lease.
- A time schedule for various steps to be taken in case of underground and opencast mines has also been prepared as a benchmark against which the progress of the captive coal blocks would be assessed.