Cancel 8 coal mines to PSUs, deduct bank guarantee of 2: IMG
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Cancel 8 coal mines to PSUs, deduct bank guarantee of 2: IMG

Last Updated: Wednesday, November 07, 2012, 19:15
 
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Cancel 8 coal mines to PSUs, deduct bank guarantee of 2: IMG
New Delhi: Stepping up action against erring PSUs which failed to develop coal mines, the Inter-Ministerial panel on coal blocks has recommended de-allocation of eight such blocks after scrutiny of 19 cases.

The panel, whose earlier recommendation for de-allocation of 13 mines to private firms has already been accepted by the government, has also asked for imposition of bank guarantee in six cases and deduction in two cases.

"The Inter-Ministerial Group (IMG) reviewed 19 coal blocks allotted to public sector firms in the last two days. It has recommended for de-allocation of eight mines and deduction of bank guarantee in two cases," a government official said.

In six cases, it has recommended for imposition of bank guarantee, the official said.

"Among the blocks recommended for de-allocation are Mandakini, Utkal- D and Touli-Paharpur," he said added that the remaining 14 cases would be examined by the IMG post-Diwali.

Utkal-D coal block in Odisha was allotted to Orissa Mininig Corporation (OMC) in December 2003 while Mandakini block was given to Assam Mineral Development Corporation.

Another block which has been de-allocated is Shankarpur/Bhatgaon II & Extension block in Chhattisgarh alloted to Chhattisgarh Mineral Development Corporation in 2007.

The block in Bisrampur Coalfields has a geological reserve of 80 million tonnes (MT).

The decision to de-allocate the blocks followed marathon meetings on November 5 and 6 by the IMG, which has so far reviewed 19 out of 33 cases.

The IMG on October 9 and 10 had examined 33 coal blocks allocated to public sector firms including Andhra Pradesh Power Generation Corporation, NALCO and MMTC which were issued notices for delay in production.

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.


PTI



First Published: Wednesday, November 07, 2012, 19:15


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