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Govt asks PSUs to present case before IMG on coal blocks

Last Updated: Sunday, September 30, 2012 - 12:06

New Delhi: After the deallocation of 13 coal mines of private firms, the Coal Ministry has now asked state-owned firms, which have been issued notices for delays in developing coal blocks, to present their case before the Inter-Ministerial Group next week.

"The Coal Ministry has written to public sector firms, which were alloted mines, to present their case before the IMG on October 9 and 10," said an official at the ministry.

Of the total 31 coal blocks allotted to the public sector firms which were issued notices, around 15 coal block holders will present their case on first day, while 16 will make presentations on the second day, the official added.

The firms which will make presentations include MMTC, Chhattisgarh Mineral Development Corporation and TVNL.

The IMG recently concluded the scrutiny of 31 coal blocks of 51 private firms.

The government has accepted the recommendations of the IMG, which had recommended de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.

The Coal Ministry is likely to soon begin issuing deallocation letters to private firms whose mines were cancelled and those where bank guarantees were deducted for sitting idle on mines given to them for captive use.

A total of 58 mines were given show cause notices for failure to develop the blocks within stipulated timeline.

The government had formed the IMG in July to review the progress of coal blocks allocated to companies for captive use.


First Published: Sunday, September 30, 2012 - 12:06
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