The inter-ministerial group (IMG) on Tuesday recommended the de-allocation of yet another coal block and encashment of bank guarantee of two coal blocks. The three blocks are part of the 58 coal blocks that find mention in the CAG report and their allocation process is under scrutiny.
“We have recommended the de-allocation of Macherkunda coal block that was with Bihar Sponge Iron Company Ltd.,” said a senior government official and member of the IMG. The Macherkunda block was allocated to Bihar Sponge Iron in August 2008 and had a total extractable coal of around 9 million tonnes.
In the case of the Jitpur block allocated to Jindal Steel and Power and the Chitarpur block allocated to Corporate Ispat & Alloys, the IMG recommended an encashment of bank guarantee. The IMG members refused to divulge the quantum of bank guarantee encashment.
The Jitpur block was allocated in February 2007 while the Chitarpur block was given in September 2005.
With this, the IMG has recommended a total of eight coal blocks for de-allocation and encashment of bank guarantees in another 10 blocks.
The IMG is scrutinising 29 blocks awarded to private firms out of the total 58 which were given show-cause notices for delays in operating mines. The panel has reviewed 22 coal blocks so far.