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Monday, 19 October 09
COAL MINISTRY SEEKS EXPLANATION FROM AP GENCO


The Hindu Business reported that, the Coal Ministry has asked the Power Generation Corporation of Andhra Pradesh (AP Genco) to explain why there was an inordinate delay in development of coal blocks allotted to it more than two years ago.

The Ministry gave 15 days’ time to AP Genco to explain why delay in development of the coal blocks should not be treated as violation of the terms and conditions of the allotment.

The notice, signed by Under-Secretary Mr V.S. Rana, cautioned that the Ministry would take appropriate action, including de-allocation of the blocks, if AP Genco did not respond and give a satisfactory reply. The notice was also sent to the Chief Secret ary, Mr P. Ramakanth Reddy, on October 15, official sources told PTI.

AP Genco was allotted Anesattapalli and Punukulla Chilk coal blocks in February 2007, and Penegadapa block in May 2007. Since then, many review meetings were held between the Ministry and the AP Genco officials and following one such meeting on March 25 -26, 2008, that the former issued the first show-cause notice to the latter over delay in development of the blocks.

A senior official of AP Genco, when contacted, said they had communicated to the Ministry that they were in the process of conducting a study on whether these coal blocks were viable as they were located in a total forest area. — PTI
Source: The Hindu Business



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