CoalMin to review 61 blocks on February 7 & 8

Tata Steel, Hindustan Zinc, Essar, Adani, Arcelor Mittal, GVK and JSPL among those to be scrutinised

The coal ministry would next week review progress on 61 coal blocks allocated to 41 companies which are facing cancellation of licences due to delays in commencing production.

The Centre had earlier this month told the Supreme Court in an ongoing hearing in the Rs 1.86-lakh-crore coal scam that it would examine the status of development in the 61 blocks.

The companies to be scrutinised include Tata Steel, Rungta Mines, Hindustan Zinc, Essar Power, Hindalco Industries, Adani Power, Arcelor Mittal, GVK Power, Monnet Ispat, Lanco, Jindal Steel & Power, Bhushan Ltd and JSW Steel, J K Cement, Castron Technologies and Abhijeet Infrastructure.

The blocks would be reviewed on February 7 and 8, in a meeting to be chaired by the coal ministry’s additional secretary, A K Dubey, in Coal India’s office here. “The companies’ replies will be considered along with the documents furnished in response to the ministry’s notice,” said a source close to the development.

The ministry had told the companies in a January 16 letter that blocks where environment clearance and stage-I of forest clearance had not been obtained would be de-allocated. The ministry would also cancel allocations of blocks which were unexplored or partially explored at the time of allocation but prospecting licence (PL) has not been obtained or geological reports have not been prepared even after receiving a PL.

Apart from the companies, the ministry had also given three weeks time to the state governments concerned and the environment ministry for giving their views on the matter. The coal ministry will also take a decision later in cases where stage-II forest clearance has not been obtained.

The companies have also been asked to explain whether they have executed mining leases or applied for them. The firms have time till February 5 to obtain the pending approvals and furnish the documents in support. A decision for de-allocation will be taken based on the documents.

The review exercise picked up pace earlier this month and the ministry identified the 61 blocks allocated to private companies post 2005 after the apex court asked the Centre to explain the delays. The Centre has conceded before the court that “in hindsight, we can say something has gone wrong, and some correction is required to be done.”

Only 35 of the 218 captive blocks allocated since 1993 have come into production. The coal ministry has cancelled 51 blocks since 2010 on grounds of delay.