The Coal Mine Development and Production Agreement is signed with the successful bidder. This agreement outlines activities/statutory clearances which are bifurcated into milestones, each with a fixed completion time. In case the allocatee fails to achieve these milestones, a show cause notice is issued, requesting a response from the successful bidder.

To ensure fair assessment, the Ministry has established a Scrutiny Committee dedicated to reviewing show cause notices and the corresponding responses received from allocatees on a case-by-case basis. The committee's primary responsibility is to examine the delays attributable to the allocattees and make recommendations regarding penalties. The current Chairman of the Scrutiny Committee is Partha S. Bhattacharyya, who previously served as the Chairman of Coal India Limited (CIL).

The committee consists of members with relevant expertise and experience in the coal industry. There is also representation from different entities including Coal Mines Planning and Design Institute Limited (CMPDIL), Coal Controller's Organization (CCO), and the concerned coal-bearing State Governments.

The Scrutiny Committee has conducted a significant number of meetings, with a total of 21 meetings held thus far. During these meetings, the committee has reviewed and deliberated upon the show cause notices and replies received from the coal block allocattees. The objective is to thoroughly examine the reasons for delays and determine whether penalties should be recommended in such cases.

The meetings of the Scrutiny Committee provide a platform for comprehensive discussions among the committee members, enabling the sharing of diverse perspectives and expertise. This collaborative approach assists in reaching informed decisions regarding penalties, taking into account the specific circumstances of each case.

The existence of the Scrutiny Committee demonstrates the Ministry's commitment to ensuring accountability and adherence to timelines in the coal block allocation process. By evaluating delays and recommending penalties where appropriate, the committee plays a crucial role in promoting transparency, efficiency, and compliance within the coal sector.