The Coal Ministry has de-allocated two more coal blocks in addition to the four that have already been cancelled in the ongoing review of mines given to private sector companies. The two blocks had been allotted to SKS Ispat,where Union Minister Subodh Kant Sahais brother was a director,and Sajjan Jindal-promoted JSW. In addition at least five more blocks could be de-allocated by this week.
The four blocks already taken over by the Coal Ministry are Castron Minings Brahmdiha in Jharkhand; Fieldmining Ispats Chinora and Warora coal blocks in Maharashtra; and Domco Smokeless Fuelss Lalgarh North block in Jharkhand.
SKS Ispat will lose its Rawanwara North block in Madhya Pradesh allocated in May 2007. It had faced controversy after it was found that Sudhir Kant Sahai,brother of minister Subodh Kant,was a director. JSW had got Gourangdih mine in West Bengal.
Following recommendations of the Inter Ministerial Group,the ministry has also approved deduction of bank guarantees of four firms,including Monnet Ispat and Energy (for Utkal-B2 block),Usha Martin (Lohari block),and Veerangana Steel and Gupta Metalliks (for delay in work on Marki Mangli II,III and IV mines and the Nerad Malegaon block).
Bhushan Steel and Strips,which held Patrapara block in Orissa along with four other companies,also faces de-allocation.