40 captive coal blocks to be reviewed

IMG was formed to review the progress of blocks allocated to firms for captive use and recommend action

An inter-ministerial panel headed by the coal ministry will meet over three days beginning Wednesday to verify the reasons cited by top companies for failing to develop 45 captive coal blocks allocated to them. The verification exercise comes at the backdrop of the government recently issuing show-cause notices to these companies, which include Jindal Steel & Power Ltd (JSPL), Tata Power, power generator NTPC and steel major SAIL.

“The inter-ministerial group (IMG) will review the status of 15 coal blocks tomorrow, which are new cases. On October 24 and 25, it will take a call on all the 30 coal blocks which were issued show-cause notices a couple of months back,” a senior coal ministry official told reporters.

The blocks include JSPL’s Amarkonda Murgadangal in Jharkhand, Utkal 1B and Ramchandi Promotional block in Odisha. Also on the review list are the Mandakini A block allocated jointly to Tata Power, Jindal Photo and Monnet Ispat, apart from GVK Power’s Tokisud North mine in Jharkhand.

Also, Birla Corporation’s Bikram coal block would be taken up for review. Among public sector firms, NTPC’s Pakri Barwadih and Talaipalli blocks and SAIL’s Sitanala mine in Jharkhand would be subjected to scrutiny.

The government had formed the IMG last year to review the progress of blocks allocated to firms for captive use and recommend action, including de-allocation. The panel under the chairmanship of the additional secretary in the coal ministry also has members from the steel and power ministries.