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Sep 22, 2012, 03.06 PM IST
IMG meetings on coal block de-allocation, maybe over for the month, but in the series of meetings held post the coalgate furore, the IMG reviewed 29 coal blocks allotted to private sector companies.
The Inter-Ministerial Group (IMG) meetings on coal block de-allocation, maybe over for the month, but in the series of meetings held post the coalgate furore, the IMG reviewed 29 coal blocks allotted to private sector companies, so which companies lost out, and which ones managed to avoid a full deallocation?, Anshu Sharma of CNBC-TV18, reports the status of the IMG's decisions.
In April-May 2012, the coal ministry sent out as many as 58 show cause notices to companies allotted coal blocks for delay in development and production of the coal blocks. Members from coal, steel, power, finance, DIPP and law ministries are part of Inter-Ministerial Group which has the task of the reviewing coal blocks.
With much confusion over guidelines to be followed for review of such coal blocks, IMG decided to give companies a chance to explain the delay in mining from the blocks given. Some of bigwigs of companies were present to make their cases. Private companies like Tata Steel , Reliance Power , Bhushan Steel , Monnet Ispat , JSPL , JSW Steel , Usha Martin amongst others.
IMG has recommended de-allocation for 13 coal blocks of which seven blocks have been de-allocated by the government for slow development and delay in setting up of the end use plants which includes blocks allotted to Bhushan Steel, JSW Steel and the controversial SKS Ispat.
Meanwhile, this week's recommendations for de-allocation is still pending for an approval from the coal ministry, some of the blocks which may be de-allocated includes the likes of Bihar Sponge , Rungta Mines & Sunflag Iron , Gujarat Ambuja Cements, Grasim Industries amongst others.
ON IMG's recommendation again, government has approved deduction of bank guarantees submitted by the companies like Virangana Steel, Usha Martin, Tata Sponge Iron and Bhushan Power.
The other two blocks allotted to JAS Infra and Vinni Iron & Steel is under CBI scanner already and the ministry of coal has sought for opinion before taking it up to the IMG. The CBI is questioning directors of JAS infra and Vini Iron is named in FIR lodged by CBI for irregularity during allocation of coal blocks. According to sources, IMG is now going to meet early next month to review coal blocks allotted to the PSUs & the state utilities.
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