MG axe on three more coal blocks
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19/09/2012
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Business Standard (New Delhi)
The blocks facing action are part of the 29 under the IMG scanner
The Inter-Ministerial Group (IMG) reviewing the controversial allotment of coal blocks for captive mining on Wednesday recommended cancelling those given to three companies, including Rungta Mines Ltd, due to production delays. It also said the government should deduct bank guarantees given by six companies, including Arcelor Mittal India Ltd, regarding four blocks.
The recommendations will be placed before Coal Minister Sriprakash Jaiswal for approval.
So far, the minister has approved recommendations for cancelling the allocations of seven blocks held by private miners, including SKS Ispat, JSW Steel and Bhushan Steel.
The three blocks recommended for cancellation on Wednesday are Choritand Tailaya being developed by Rungta Mines and Sunflag Iron & Steel; North Dhadu by Jharkhand Ispat Pvt Ltd, Electrosteel Castings, Pavanjay Steel & Power Generation and Adhunik Alloys & Power Ltd; and the Gondkhari block held by Maharashtra Seamless, Dhariwal Infrastructure (P) Ltd and Kesoram Industries.
The four blocks where deduction of bank guarantees have been recommended by IMG are Seregarha by ArcelorMittal India and GVK Power (Govindwal Sahib) Ltd; the Moitra block by Jayaswal Neco; Durgapur II/Sarya by DB Power and the Dumri block held by Neelachal Iron & Steel and Bajrang Ispat.
The blocks facing action are part of the 29 under the IMG scanner.
The panel is chaired by the coal ministry’s additional secretary, Zohra Chatterji.
It began work earlier this month, after opposition parties’ demanded cancellation of all the 142 blocks allocated to private companies since 2004.