IMG to review guidelines on de-allocation of coal blocks

The inter-ministerial group's (IMG) review of the coal block allocation is gaining momentum. Fifty eight coal blocks are under the scanner, reports Anshu Sharma of CNBC-TV18.

The coal minister Sriprakash Jaiswal is very clear that the de-allocation will only take place if it is recommended by the inter-ministerial group.  
There are two set of coal blocks that is being reviewed by the inter-ministerial group headed by Zohra Chatterji, additional secretary in the coal ministry. The coal ministry had issued the show cause notice to fifty eight coal blocks and the IMG will finalize the guidelines on what method should be followed for de-allocation or issuance of warning letter to these 58 coal blocks.
The other set includes, a bank guarantee of 18 blocks have to be reviewed for delay in production and development of coal blocks prior to 2009 and 2010, where IMG has to decide on de-allocation or encashment of bank guarantee. According to sources the IMG has recommended two blocks to be de-allocated which are JSPL’s Jitpur block and Usha Martin's Lohari block. It is likely that the IMG will meet and discuss on some guidelines and may also decide on de-allocation.