Coal Ministry warns SAIL of cancelling mine allotment for delays

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26 Aug, 2025 12:21

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The Coal Ministry has asked steel major SAIL to explain delay in submission of 'completion notice' related to allotment of a coal block to the PSU.

The Ministry has also warned the PSU of terminating the allotment agreement if the steel firm fails to give an explanation for the delay in submission of completion notice.

SAIL was allotted Parbatpur Central coal block in Jharkhand last year in pursuance of the provisions contained in section 5 of the Coal Mines (Special Provisions) Act, 2015.

Under the rules, the company was required to submit 'completion notice' within 30 days of Agreement Date which was November 26, 2015.

"You are here called upon to show cause...within a period of 20 days from the date of issue of show cause as to why the delay in non-submission of Completion Notice should not be held a violation of the terms and conditions of allotment of Parbatpur Central coal block," the Coal Ministry said in a letter to Steel Authority of India Ltd (SAIL).

The ministry further said if SAIL failed to do so "it would be presumed" that the company has "no explanation to offer and action as appropriate would be taken against your company for termination of Allotment Agreement of Parbatpur Central coal block".

"One of the conditions of allotment was submission of Completion Notice...within 30 Days of Agreement Date. SAIL is yet to furnish the Competition Notice...the last date for submission of which was November 26, 2015," the letter said.

The ministry further said that the payment of first instalment of Upfront Amount; furnishing of Performance Bank Guarantee and the Fixed Amount in respectively were also not submitted in time, it added.