CAG report: 90 coal blocks face de-allocation threat

The Comptroller and Auditor General (CAG) report over coal block allocation has caused a row, with as many as 90 mines facing the threat of de-allocation.

These mines are under the scanner for non-production. Of the 90, 58 coal blocks are in the immediate focus with an Inter-Ministerial Group (IMG) set to decide their fate on Monday.

IMG - comprising representatives from different ministries - may recommend cancellation of such blocks, which did not comply to the development norms.

The government has already issued de-allocation notices to these 58 blocks - 33 alloted to government firms and 25 to private entities.

Besides, there are 32 more whose cases would be reviewed by the IMG in its subsequent meetings, sources said. These 32 cases were taken up by the IMG in its previous meeting, sources said.

Coal Minister Sriprakash Jaiswal had on Sunday said any number of coal blocks could be cancelled if found that allocation was made in a wrongful manner or failed to start production in the stipulated time frame.

"On the basis of the IMG report, the allocations which were made in a wrongful manner or those allottees who have failed to start production of coal in a time-bound manner may face action. Any number of coal blocks can be cancelled," Jaiswal had said.

Of the total 195 coal blocks allocated to both public and private firms over a decade, only 30 mines have begun production according to government records.

In its recent report tabled in Parliament, CAG stated that undue benefits to the tune of Rs 1.86 lakh crore were extended to private firms on account of allocation of 57 mines to them without auction.

With inputs from PTI