The Inter-Ministerial Group (IMG) reviewing 29 coal blocks has its task cut out in deciding de-allocation. This is because most of the projects under review have got delayed due to pending environment and forest clearances as well as issues concerning land acquisition.
It is to be seen whether the IMG would be able to make its final recommendations by the September 15 deadline.
Nearly, 10 blocks have not made satisfactory progress, sources in the know said.
“Blocks where companies have not made any serious efforts would be recommended for de-allocation,” said an official, who is member of the IMG. The official declined to divulge the number of blocks or companies that may face de-allocation.
“The next meeting of the IMG will be held on September 12 to deliberate and finalise its recommendations,” said a Coal Ministry statement.
Another senior Government Official told Business Line , “If on the one hand the Government is not facilitating clearances and on the other takes strict action for not meeting deadlines, this is unfair.”
The Coal Ministry would shortly publish framework for en-cashing of bank guarantees for not adhering to milestones for exploration of captive mines.
The day saw an otherwise calm Naveen Jindal, Chairman and Managing Director of Jindal Steel & Power (JSPL), on short fuse. He was at the receiving end of mediapersons who sought his comments on his alleged links to the coal scam.
Jindal’s company has been alleged of using cheaper coal for generating power and selling it in the spot market at higher price. JSPL has been reporting profits from the project. Jindal has maintained that efficiency and better implementation has resulted in profits.
Salman Khurshid defends Govt
Meanwhile, Law Minister Salman Khurshid once again defended the UPA Government saying Prime Minister Manmohan Singh has not done anything wrong by allocating blocks without auction.
According to Khurshid, the Law Ministry felt MMRDA needs to be amended. New amendment was introduced in Parliament which went to Standing Committee, which said the states need to be taken on board.
In 2010, the States agreed and the legislation was passed. There was no delay in passing the legislation.
While it takes 2-3 years to pass the legislation, the question is should we stop giving coal to power, steel industry?, he asked