IMG on coal de-allocates four coal blocks

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IMG on coal de-allocates four coal blocks
The government on Thursday approved de-allocation of 4 coal blocks as recommended by the Inter Ministerial Group (IMG).

The IMG in its meeting held on 12th September, 2012, recommended four blocks, namely - Bramhadih Block allocated to M/s Castron Mining Limited, Chinora and Warora (Southern Part) Blocks allocated to M/s Fieldmining and Ispat Limited, Lalgarh (North) Block allotted to M/s DOMCO Smokeless Fuels Pvt. Limited.

Also, deduction of Bank Guarantee in case of Marki Mangli-II, III and IV Blocks allocated to M/s Shri Virangana Steels Limited.

It also recommended that in the case of Utkal B2 Block allocated to M/s Monnet Ispat & Energy Limited, where there was substantial progress but no provision for BG, the allocattee may be asked to submit BG 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.

IMG has been reviewing progress of coal blocks deliberated upon the action to be recommended in individual cases. The IMG had earlier heard the coal block allocattees who were invited to make presentations from 6th to 8th September, 2012, and also obtained a status paper from Coal Controller/Ministry of Coal.

The IMG deliberated upon the broad parameters which may constitute substantial progress of coal block and decided that purchase of GR, Approval of Mining Plan, Grant of Environment Clearance, status of Forest Clearance and progress made in land acquisition shall constitute a basic requirement for evaluating progress.

Where there is no provision for Bank Guarantee (BG) and the block is not found fit for de-allocation and there is substantial progress, the IMG may recommend that the allocattee may be asked to submit a BG. The amount of BG that may be asked for would be fixed factoring in the time elapsed since date of allotment. 

However, IMG will meet again today for further discussion.

Read more about: government, coal
Story first published: Friday, September 14, 2012, 9:39 [IST]
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