Firms to explain production delays to IMG
The inter-ministerial group on Thursday began its three-day review of the development of 58 coal blocks allocated to various private and public sector firms by the coal ministry, HT reports.Updated: Sep 07, 2012 02:20 IST
The inter-ministerial group (IMG) on Thursday began its three-day review of the development of 58 coal blocks allocated to various private and public sector firms by the coal ministry.
The IMG, headed by Zohra Chatterji, additional secretary, coal ministry, was set up in July to recommend action against the coal block allottees for not meeting timelines set to start the production. It has representatives from the ministries of finance, power, steel and environment.
Over the next three days, around 35 companies would present details of investments made till now and the reasons for not starting coal production. The IMG will also look at the encashment of bank guarantees of 18 firms for non-performance of coal blocks.
In the first phase, 10 companies, including Usha Martin, Monnet Ispat and Corporate Ispat Alloys have been asked to present their views on why they had failed to develop the coal blocks within a deadline of around 42 months.
Monnet Ispat and Energy that made its case in front of the IMG said it expects to begin production by March, 2013 from Utkal B2 coal block in Odisha, which is under the scanner of an inter-ministerial (IMG) group reviewing the status of coal block allocations."We have estimated it (production from the Utkal B2 coal block) to be around March, 2013," Sandeep Jajodia, Monnet Ispat's CMD said.