Govt sets Sept 15 deadline for coal block de-allocation

According to sources,the coal ministry decided to complete the entire exercise in all cases where show cause notices were issued,to meet the deadline.

The PMO conveyed its displeasure to the coal ministry over inaction in cancelling the blocks where mining has not taken place.

The PMO had in April asked the ministry to review the cases of all blocks where production is yet to take place. Notices were issued in April to 58 allottees,including 25 private companies such as Tata Power,ArcelorMittal,Reliance Power,Hindalco,Grasim Industries and GVK Power.

The coal ministry swung into action just ahead of the meeting on Monday of the IMG,which it expects to do due diligence in a faster pace and recording all specific reasons for recommending de-allocation of the blocks.

Specific focus is on two blocks allotted to Usha Martin and Congress MP Naveen Jindals Jindal Steel and Power JSPL.

The IMG has representatives of steel,power,law,economic affairs and mines ministries,among others.

According to coal ministry officials a good number of these 58 blocks are among those mentioned in the Comptroller and Auditor Generals CAG report.

The CAG in its recent report stated that undue benefits to the tune of Rs 1.86 lakh crore were extended to private firms on account of allocation of 57 mines to them.

The Central Bureau of Investigation is also probing criminality in 12 firms which were given licences under the fast track category but did not take steps to commence mining.