‘Projects hit by land, naxal issues’ | business | Hindustan Times
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‘Projects hit by land, naxal issues’

business Updated: Sep 02, 2012 21:39 IST
Gaurav Choudhury
Gaurav Choudhury
Hindustan Times
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Land acquisition, forest clearance and Naxalite problems: these are the three primary reasons power and steel companies have cited for the delay in projects for which they were given exclusive coal mining rights several years ago.

The government had asked 58 companies to explain the reasons for the delay in projects for which they were granted captive coal blocks many years ago.

In response, these companies have told the coal ministry that projects can’t take off due to unanticipated problems in land acquisition, forest clearance and left-wing extremism.

The inter-ministerial group (IMG), which will meet today, will go through each of these responses with a fine tooth-comb before recommending a set of measures, including possible de-allocation of blocks, sources told HT.

The Comptroller and Auditor General (CAG) — India’s national auditor-estimated in a recent report that arbitrary allocation of 57 coal fields to 25 private companies may have robbed the exchequer of potential revenues of R1.86 lakh crore.

“The IMG will do due diligence and record all specific reasons for recommending de-allocation,” the source said.