Odisha headache for CIL

Calcutta: Mahanadi Coalfields Ltd, a Coal India subsidiary, will examine the showcause notices carrying penalty worth Rs 20,169 crore issued by the Odisha government for violating mining plans, environmental norms and other regulations.

The respective deputy directors of the mines in the Talcher, Rourkela and Sambalpur circles have issued 24 notices on October 31, 2017, to the project officers of different mining projects of Mahanadi Coalfields Ltd. The subsidiary received these notices on November 1, 2017.

"The showcause notices have been issued for a total amount of Rs 20,169 crore as compensation under section 21(5) of the Mines & Mineral Development Regulations (MMDR) Act, 1957, for production in violation of mining plan, Environmental Protection Act 1986, Water (Prevention and Control of Pollution) Act, 1974, and Air (Prevention and Control of Pollution) Act, 1981....," Coal India today said in a communication to the BSE. The company will send its formal response within 30 days of the date of the issue of the notices.

"Mahanadi Coalfields is examining the showcause notices and taking all the required actions, including collection of records and seeking expert opinion. Reply of showcause notices will be submitted within the stipulated time," the filing said.

The showcause notices follow the Supreme Court's judgment on August 2, 2017, on unlawful mining of manganese and iron ore in Odisha.

Although coal mining was not part of the judgment, the two judges - Justice Madan B. Lokur and Justice Deepak Gupta - had taken a broader view of illegal mining and the consequence, including penalty under the MMDR Act.

Coal India Ltd