21. What are the reasons for the delay in production?
The CAG report found that the Centre's failure to coordinate with state government
agencies might have led to a delay in production. Though the Expert Committee Report on
Road Map for Coal Sector Reforms, 2005 suggested that the Ministry of Coal should take a
proactive role in liaising with state governments, the UPA government appears to have taken
little notice.
The CAG also found that the Coal Controller's Organisation (under the purview of
the Ministry of Coal) failed to discharge its duty to review and monitor the progress of
allotted coal blocks. The Ministry of Coal itself acknowledged that the CCO did not have
enough personnel.17
Further, as mentioned in question 14, private companies lack the incentive to commence production
of coal on time. Finally, even in cases where the government could have penalised private
companies for delays, the government has acted in a negligent manner by ignoring the problem
and allowing Bankers' Guarantee provided by the companies to lapse (see questions 23-24).
