NEW DELHI | Dec 05, 2016: Government has so far slapped 12 notices to private companies to explain reasons for violation of norms related to development of coal mines, that were allotted under the auction route, Parliament was informed today.
"So far, 12 show-cause notices have been issued to the private sector allocatee companies of the auctioned coal mines for non-compliance of milestones as specified in Schedule E of their respective CMPDAs (Coal Mines Development and Production Agreement)," Coal Minister Piyush Goyal said in a reply to the Rajya Sabha.
So far, 31 coal mines have been allocated by way of auction to the regulated as well as non-regulated sector under the said Act, of which 30 have been allocated to private sector companies.
A monitoring mechanism for the development of the coal mines in accordance with the efficiency parameters specified in the CMDPA is in place.
Failure by the allottee companies in adhering to the terms and conditions/efficiency parameters for the development of the coal mines results in measures as stipulated in the agreement by the Nominated Authority which includes appropriation of the performance of bank guarantee and cancellation of the vesting order.
Moreover, mining lease and mining plan are statutory documents incorporating various duties and responsibilities violation of which attracts punishment/penalties.
In cases, where violation of the terms and conditions have been observed, show cause notices have been issued, the minister said.
Terms and conditions for the development of the coal mines have been prescribed in the Coal Mines Development and Production Agreement executed with the allottee companies, he said.
"In accordance with the provisions...performace bank guarantee by the successful bidder is linked with the milestones for the development of the coal mine," he added.
(Source: http://economictimes.indiatimes.com/)