Accepting the recommendation of the
Inter-Ministerial group (IMG), the Union coal ministry on Monday decided to
deallocate the Gourangdih block.
The block was jointly allocated to JSW Steel - owned by Congress MP Naveen Jindal's brother Sajjan Jindal - and Himachal EMTA.
With the decision, five of the seven blocks recommended by IMG for cancellation have been deallocated.
"I have approved the IMG's recommendations given on Friday and will take a call on others," Union Coal Minister Sriprakash Jaiswal said.
The ministry also
approved the IMG's recommendation for deduction of bank guarantees of two allottees for failing to develop their mines on time.
The IMG, which met on Monday, recommended the deduction of bank guarantee of Tubed coal block in Jharkhand as well. The block was allotted to Hindalco and Tata Power in August 2007.
The Tubed block has an extractable reserve of 130 million tonnes and coal from it was meant to be used for a power project.
Interestingly, of the
remaining two blocks under scrutiny, one was allocated to SKS Ispat - whose honorary chairman is the brother of Union Tourism Minister Subodh Kant Sahay - and Bhushan Steel - whose case was recommended by Home Minister Sushil Kumar Shinde when he held the power portfolio.
IMG would meet again on Tuesday to scrutinise another six or seven companies which failed to adhere to the timeframe for developing blocks allocated to them, sources said.
On deduction of bank guarantee, the government has accepted the IMG's recommendation for Marki Mangli II, III and IV in Maharashtra, allotted to Shri Virangana Steel in 2005; Lohari block in Jharkhand, allocated to Usha Martin in 2005; and Nerad Malegaon in Maharashtra, allotted to Gupta Metaliks & Power in 2006.
Courtesy: Mail Today 
Special 
