Govt to cancel four coal block allotments,encash three bank guarantees

The IMG also recommended encashing the bank guarantees of Marki Mangli-II,III and IV Blocks in Maharashtra allotted to Shri Virangana Steels Ltd. “Recommendations have been accepted by the government,” the statement said.

The Centre’s decision came in the wake of the IMG recommendation,made after evaluating the progress in each of these cases with respect to milestones,including approval of mining plan,grant of environment clearance,status of forest clearance and land acquisition. The IMG,in its meeting held on Wednesday,had examined the cases of five companies that were allotted eight coal blocks.

The group also recommended that in the case of ‘Utkal B2 Block’ in Odisha allotted to Monnet Ispat & Energy Ltd in 1999,“where there was substantial progress but no provision for bank guarantee,the allottee may be asked to submit bank guarantee amounting to three years royalty within a period of one month from date of letter in this regard,failing which the block may be deallocated”.

Sources said the bank guarantee in case of Shri Virangana Steels,now Topworth Urja and Metals Ltd,is Rs 2 crore,while that for Monnet Ispat is Rs 90 crore.

The eight blocks are among 58 being probed by the IMG. The panel has so far taken up cases of 29 blocks allotted to private companies. While these eight blocks were reviewed on Wednesday,10 more are expected to be taken up on Friday.