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Showcause notice to RPower for delays in developing coal mines

 PTI |  2016-06-23 00:00:23.0  |  New Delhi

Showcause notice to RPower for delays in developing coal mines

“You are hereby called upon to show cause, on each milestone separately...as to why the delay in the development of the coal block should not be held as violation of the terms and conditions of the allocation of Kerandari B&C coal block and why the BG submitted by you should not be deducted for non-achievement of milestones stipulated for development of coal block,” the coal ministry said.

The ministry has given the company 15 days to reply. “In case no reply is received from your end within 15 days, it would be presumed that your company has no explanation to offer and action, as appropriate, would be taken against your company,” the ministry said in the notice to the company. 

Reliance Power/JIPL (Jharkhand Integrated Power Ltd) was allocated Kerandari B & C coal block for using coal captively in the Tilaiya Ultra Mega Power Porject (UMPP), however, Reliance Power has relinquished Tilaiya UMPP project, it said. ‘Agree to Terminate’ option was exercised and accepted voluntarily by RPL and the Procurers. This act, though authorised, is extraneous to the course of development of coal block, the notice said. 

“Accordingly, Tilaiya UMPP project has received a huge setback rendering the country deprived of power to be produced from the said project. Hence, RPL/JIPL cannot be absolved of its responsibility of paying damages for non-achievement of milestones set for development of Kerandari B&C coal block,” it said. It has been decided to place the matter of deduction of bank guarantee (BG) submitted by Reliance Power for Kerandari B&C coal block before the Inter-Ministerial Group for making recommendations to the Government.

In 2007 the coal ministry had allocated Kerandari B & C coal block to JIPL, a subsidiary of Power Finance Corporation (PFC) subject to certain conditions. Further, Reliance Power acquired JIPL from PFC in 2009 after emerging as the lowest bidder in the International Competitive Bidding process for Tilaiya UMPP. Subsequently, RPL communicated that it had terminated the PPA and relinquished Tiliaya UMPP. 

Coal imports will further decline this fiscal: Anil Swarup
Coal imports will further come down in the ongoing fiscal on account of increased domestic output, a top official said on Wednesday. 

"Coal imports will continue to come down with increased availability of coal (domestic)," Coal Secretary Anil Swarup told reporters here on the sidelines of an event here.

The data of the first two months of this fiscal, he said, indicate the reduction in the import of coal.
"Quantities I cannot predict how much will come down. I have no doubts that coal imports will come down. Last fiscal, we saved Rs 24,000 crore and we are aiming Rs 40,000 crore of saving this year (2016-17)," Swarup said.

The coal secretary further said the demand of coal in the country is not growing at the pace it was envisaged and expressed hope that with Uday scheme will help boost the demand for the dry fuel in the days to come. "We will continue to produce....We are not revising the (coal production) target," he stressed. The secretary further said there has been encouraging response with regard to the ongoing auction of coal linkages for the non-regulated sector, including sponge iron. 

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