The coal ministry has stated that it may revoke licences of 60 companies for slow development of coal blocks. The companies include major players like Tata Power, Reliance Power, ArcelorMittal, Jindal Steel & Power, Monnet Ispat, Hindalco, Tata Sponge, Electro Steel Casting, MMTC, NALCO etc.
The major problems faced by these companies are
The major problems faced by these companies are
- Environmental / Forest clearance
- Land acquisition
- Mining Lease
It is a good sign that the Coal Ministry is pushing the private developers to make progress on the mines/coal blocks allotted to them, however, revoking of licences would not solve the issues. The Ministry would have to go through the allocation process again and the next batch would face similar issues. The Ministry may charge hefty fines in cases of negligence by developers - however if the issue is stuck with some Govt. department, the Ministry may take the onus on itself and try to resolve it through the highest powers possible.
On an earlier occasion,23 mining licences for captive coal blocks were revoked and later allotted to Coal India Ltd. (a PSU). What has Coal India done with regards these? If they have made progress on the same, the processes need to be highlighted to private developers.
When private players are ready to do investments, Govt. should also take a step forward and provide the required clearances after adequate due diligence. Contract clauses and efficient monitoring would ensure that the private player does not misuse the natural resources.
Additionally, mine development is a relatively nascent industry in India and the Govt. companies have had the maximum exposure so far. Govt. should assist the private players with the know-how and supply of trained manpower on deputation basis.
No comments:
Post a Comment