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Cancel 3 coal mines; impose BG in case of MMTC, Nalco: IMG

The Inter-Ministerial Group has recommended deallocation of three coal mines, and deduction and imposition of Bank Guarantee of PSU firms including MMTC and Nalco.

November 22, 2012 / 06:39 PM IST
 
 
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The Inter-Ministerial Group has recommended deallocation of three coal mines, and deduction and imposition of Bank Guarantee of PSU firms including MMTC and Nalco.


"The Inter-Ministerial Group (IMG) has recommended deallocation of three coal mines -- two mines of Jharkhand State Mineral Development Corp (JSMDCL) and one mine of Madhya Pradesh State Mining Corp (MPSMCL)," a government official said.


Also read: Early clearances will make coal auction successful: NTPC


"The mines recommended for deallocation are Semaria/Piparia coal block of (MPSMCL) and Patratu and Rabodih coal blocks of JSMDCL," the official said.


The IMG, which recently reviewed 14 coal blocks of PSU firms, has also recommended imposition of Bank Guarantee (BG) in case of Utkal-E coal block of Nalco and Gomia coal block of MMTC, the official added.


In total the IMG had recommended for cancellation of 11 mines allocated to public sector firms.


Earlier this month, it had recommended de-allocation of eight such blocks after scrutiny of 19 cases. The IMG has completed the exercise of scrutiny of blocks alloted to public sector firms, which were issued show cause
notices for failing to develop mines within stipulated timeframe.


The panel's earlier recommendation for de-allocation of 13 mines to private firms has already been accepted by the government.


The panel has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and last month the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees. A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline.

The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use. The CAG had estimated that undue benefits to the tune of Rs 1.86 lakh crore might accrue to private firms on account of allocation of 57 mines to them without auction.

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