Govt to form panel to decide on idle coal blocks with 82 firms

A government panel will be formed this month to decide on captive coal blocks lying idle with firms like ArcelorMittal, Tata Steel and NTPC, according to sources.

To weed out non-serious players, the government had last year issued notices to 82 firms and sought their responses as to why coal blocks allocated to them should not be withdrawn, when they had failed to develop them in the stipulated period.

"A committee chaired by the additional secretary will be formed this month," a source told PTI, adding, "the panel will examine responses made by the firms and make recommendations."

Coal Minister Sriprakash Jaiswal in December last year had said the fate of captive coal blocks lying idle with the firms would be decided in January 2011.

The companies which were issued show cause notices which included Navin Jindal-led Jindal Steel and Power Ltd, Sajjan Jindal-led JSW Steel and GMR Energy among others.

Besides, on January 7 this year, the government had sought status report on development of captive coal blocks from 'allocatee' companies for the October-December 2010 period.

In a letter to all captive coal block allocatees/joint venture companies, the Coal Ministry had asked them to furnish status of the blocks for October-December 2010 period.

"You being a captive coal block allocatee, are requested to send the detailed information for the quarter ended December 2010, in respect of allocated coal/lignite block and associated end use project to this office by January 15, 2011," the Coal Ministry had said in the letter.

Earlier, in a similar drive, the government had de-allocated 11 coal blocks.