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BREAKING NEWS

Rs 8,297.77-cr demand notices slapped on Coal India firm

26 Mar 2018

Kolkata March 26 (IANS) Coal India on Monday said that demand notices amounting to Rs 8 297.77 crore were received for 17 projects of its subsidiary firm Mahanadi Coalfields Ltd (MCL) for production beyond approved limits for the period between 2000-01 and 2010-11.



The miner s subsidiary has already pleaded for exclusion from the demand on "valid legal grounds".

"Demand notices totalling to Rs 8 297.77 crore have been sent by Deputy Director Mines (DDM) Rourkela Sambalpur and Talcher circles in respect of 17 projects of MCL (Mahanadi Coalfields Ltd) on March 6 and 7 2018 " the miner said in a regulatory filing.

The demand notices were received from Deputy Director Mines "not for illegal mining" but for "coal production beyond the environment clearance (EC) capacity" for the period between 2000-01 to 2010-11.

Following the Supreme Court s order on August 2 2017 imposing 100 per cent penalty on mining lease holders operating without necessary clearances in Odisha the show-cause notices were issued by the DDM of Rourkela Sambalpur and Talcher circles with regard to 24 coal mining projects of MCL.

The authority asked the miner "why a compensation amount totalling to Rs 20 169 crore in respect of the 24 projects should not be levied for production beyond approved EC/ mining plan/ CTO" and sought the reply to the show-cause by November 30 2017.

"On December 7 2017 mine-specific hearing was held wherein it was pleaded from MCL side that the judgement of honourable Supreme Court dated August 2 2017 is applicable only to iron ore/manganese ore leases and not to coal along with valid arguments " the miner said in a regulatory filing.

According to the filing as the bauxite mines were excluded from the demand notice by the apex court during a subsequent judgment "it was pleaded that coal mines should also be excluded" by the same principle.

--IANS
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