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Coal ministry issues show cause notice to Monnet Ispat

The government today issued show cause notice to Monnet Ispat & Energy Ltd for allegedly using coal meant for Raipur sponge iron plant at another plant in Raigarh.

Both plants are in Chhattisgarh. In its show cause notice, the Coal Ministry has asked the company to provide explanation within three weeks on the matter.

As per the allocation letter of Gare Palma lV/5 coal block, the block was allocated to Monnet Ispat for captive mining and the dry fuel to be used for its sponge iron plant at Raipur.

However, the Ministry has found that coal from this particular block was utilised at the company's Raigarph plant.

According to the notice, at no point of time did the Ministry give permission to use coal from the mine for the Raigarh plant.

"since there was no permission accorded by ministry of coal....the same has been done in violation of terms and conditions of allocation letter, " it said.

Monnet Ispat & Energy is called upon to show cause as to why the use of coal produced from Gare Palma at its sponge iron plant at Raigarh should not be held as violation, notice added.

"The reply of the company to this show cause notice may be furnished within three weeks' time... failing which it would be presumed that company had no reply to offer and the competent authority would take appropriate action including de-allocation of coal block..., " the notice said.

Source: PTI