Coal Ministry deallocates 11 blocks

Coming down heavily on firms sitting idle on mines, the Coal Ministry has decided to deallocate 11 blocks given to companies including Jindal Steel and Power Ltd (JSPL) and Rathi Udyog Ltd.

"The Coal Ministry last evening took a decision to deallocate 11 coal blocks alloted to firms including JSPL and Rathi Udyog Ltd," a top Coal Ministry official told PTI.

The Inter-Ministerial Group (IMG) on coal blocks after reviewing the performance of 30 coal blocks had earlier recommended deallocation of 11 blocks given to companies including JSPL and Monnet Ispat & Energy.

"In the case of another 19 mines, the IMG has recommended either imposition or deduction of bank guarantee," a source had earlier said.

Coal blocks which were recommended for deallocation include Ramchandi Promotional block allotted to JSPL, the source had said.

These coal blocks were earlier issued show cause notices for delaying production.

Last month, the Coal Ministry had asked the coal block allottees to make presentation before the IMG on achievement of milestones and reasons for delays.

The firms which were asked to make presentation include, SAIL, NTPC, JSPL, Tata Power and Monnet Ispat and Energy Ltd.

Jindal Steel and Power Ltd (JSPL) was asked to make presentation with regard to delaying production from its four coal blocks -- Amarkunda Murgadangal in Jharkhand, Utkal B1 and Ramchandi Promotional block in Odisha and Urtan North in Madhya Pradesh.

SAIL was asked to make presentation for Sitanala mine in Jharkhand, and NTPC for Parki Barwadih mine in Jharkhand and Talaipalli mine in Chhattisgarh.

The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation.

The panel under the chairmanship of Additional Secretary in the Coal Ministry has members from other ministries, including steel and power.