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Re-Allocated Coal Mines Delayed Coal Production Due to Tedious Statutory Approvals

July 10, 2018 04:50 PM

Tagged Sector(s) : Coal

Captive Coal Block allotted to respective Generating units have not been able to start coal production. Delayed Land acquisitions, Forest Clearances and other statutory approval have forced extension of timelines. In anticipation of captive coal blocks to start coal production in three years, these plants were offered temporary coal supply coal contracts for three years. Matured Temporary coal supply contracts have now stressed Generators for arranging Supply Contract. In amidst of factors not in control of Generators, these Generators have requested Ministry to provide extension of coal supply contract for at least six years.

For timely execution and completion of projects, Government must mull over providing single window clearance mechanism so that the projects allotted are completed within planned figures. Statutory Approvals and Clearances are the main reason for time overrun and eventually overrun cost is to be borne by developers for the reason not attributable to their control.

Article By:
Amit Sharma

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