With this, the government has approved cancellation of licenses of five coal blocks, out of a total of seven recommended by the Inter-Ministerial Group, IMG, so far.
IMG which is scrutinising the award of 29 blocks to private parties. The block de-allocated today has 61.54 million tonnes of extractable reserves and the coal from the mine was meant to be used for a power project.
The block finds mention in the CAG report as well. The government auditor had said the allottees of the block, located in West Bengal, might have accrued undue benefit to the tune of 1,818 crore rupees.
Earlier, on September 13th, the government had decided to de-allocate four blocks – Bramhadih Block in Jharkhand allocated to Castron Mining Ltd in 1996, Chinora and Warora
(southern part) blocks in Maharashtra given to Fieldmining and Ispat Ltd in 2003, Lalgarh (North) block in Jharkhand allotted to DOMCO Smokeless Fuels Pvt Ltd in 2005.
It had also accepted the IMG recommendations to deduct Bank Guarantee, BG, in case of Marki Mangli-II, III and IV Blocks in Maharashtra allocated to private player Shri Virangana Steels besides asking Monnet Ispat & Energy to submit BG for Utkal B2 Block in Odisha.
Meanwhile, the panel is also to decide the fate of about six more coal mines allocated to private firms that were issued notices for delaying production.
The panel on Saturday had recommended deallocation of mines including one to SKS Ispat and Power and another jointly allotted to Jindal Steel Works (JSW). The panel has so far scrutinised the replies furnished by 18 coal block allottees out of 29, in its three meetings last week.
It earlier heard the coal block allottees, who were invited to make presentations from September 6-8, and also obtained updated status paper from Coal Controller and Ministry of Coal.