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A coal block allotted to the state-owned Chhattisgarh Mineral Development Corporation (CMDC) has come under the scanner of the ministry of coal for failing to expedite the work in the mines.
The ministry of coal had allotted the Gare-Palma coal block in the Mand-Raigarh coalfield to the CMDC in 2006. The block reported contain D and F grade of coal and had an estimated geological reserve of 2924 Million Tonnes (MT).
Even as nearly six years have passed after the state-owned mining company was allotted the block, no work could be started for developing the mines. “The coal ministry took a senior note and issued a show-cause notice to the CMDC,” an official in the corporation said.
The ministry observed that the CMDC had not taken any initiative to for seeking mining lease and preparing the mining plan. Besides, it had also failed to take action for getting required clearances like environment and forest. The corporation also failed to acquire the land for the mines.
“The ministry has asked the CMDC to reply to the show cause notice within 20 days,” the official said, adding that the ministry said why the act of the corporation should not be created as the violation of the block allotment agreement. If the CMDC failed to give reply, the ministry will re-allot the coal block, the notice added.
As per the agreement norms, the company allotted coal block should complete all the formalities within stipulated time and start the production within 42 months of the allotment.
The CMDC officials however denied that the work on the project had not started. “The prospecting work is going on and it takes time to complete the formalities,” a senior official, willing not to be quoted, said.
The corporation is also taking steps for seeking environment clearances, he added.