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More coal blocks are expected to be de-allocated the coming week, as the inter-ministerial group (IMG) reviews more cases over the weekend. The IMG scrutinised the cases of ten blocks allotted to 23 companies on Friday and Saturday.
Following this, the IMG decided to de-allocate the Gourangdih ABC block allocated to JSW Steel Ltd and Himachal EMTA Power Ltd, Rawanwara North Coal Block allotted to SKS Ispat and Power Ltd., and New Patrapara Coal Block allotted to Bhushan Steel Ltd., among others.
To forfeit guarantees
The IMG has recommended deduction of bank guarantee in the cases of Nerad Malegaon Block allotted to Gupta Metaliks & Power Ltd. & Gupta Coalfields Ltd, as it had not been exploited on time.
Bank guarantees were also deducted for the Lohari block allotted to Usha Martin Ltd, Radhikapur East coal block allotted to Tata Sponge Iron Ltd and others, and Bijahan coal block, allotted to Bhushan Ltd.
Gourangdih is located in Raniganj, West Bengal, and was awarded to the contractors on July 10, 2009 with geological reserves of 68.85 million tonnes. JSW Steel Ltd is promoted by Sajjan Jindal. Himachal EMTA Power Ltd is a 50:50 joint venture between Himachal Pradesh Power Corporation Limited (HPPCL) and Kolkata-based Eastern Mineral and Trading Agency (EMTA).
Continuous review
These companies and the block also figure in the list of 57 companies that the Comptroller and Auditor General of India named in its recent report on coal block allocation.
The IMG will send its latest recommendations to Coal Minister Sriprakash Jaiswal on Monday. The final decision on de-allocation will be taken by the Minister. Jaiswal said on Friday that more coal blocks would be de-allocated. The IMG is scheduled meet next on September 17.
“The IMG review is a continuous process and it will also scrutinise the progress of blocks given to government companies,” said a Coal Ministry official.
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