IST Steel and Power says it is on track to start coal production

[Caasanova]

IST Steel & Power, in which former Corporate Affairs Minister Prem Chand Gupta’s son Gaurav Gupta is a Director, on Saturday said it fails to understand why a show-cause notice has been issued to it for delay in developing the Chhattisgarh coal block that is progressing on schedule.

“We don’t know why a show-cause notice was given to us when the block is ready to start production from August, 2014.

Our end-use plant (sponge iron) has also started production,” IST Steel & Power’s Director S.C. Jain told reporters after making a presentation before the Inter-Ministerial Group (IMG).

The IMG, headed by Zohra Chatterji, Additional Secretary, Coal, is reviewing the progress in 27 coal blocks which were allocated to private companies between 2005 and 2009. It may recommend de-allocation of these blocks which have not made satisfactory progress.