Inter-ministerial panel cancels 11 coal block allocations

Move part of govt's drive to tighten noose around companies that have not developed their blocks over the years

An inter-ministerial panel headed by the additional secretary in the coal ministry has decided to cancel the allocation of 11 blocks to various companies, including Jindal Steel and Power (JSPL), Monnet Ispat & Energy and Rungta Mines.

The move is part of the government’s drive to tighten the noose around companies that haven’t developed their blocks through the years. With the latest cancellations, 51 of the 218 coal block allocations since 1993 have been axed.

The ministry also forfeited bank guarantees in six other cases. It has asked companies to furnish guarantees in five other block allocations.

The blocks, allocations for which were cancelled include Amarkonda Mugadangal and Ramchandi Promotional, which were allocated to Member of Parliament Naveen Jindal-led JSPL; Urtan North, allocated jointly to JSPL and Monnet Ispat; North of Akrapal allocated to the Strategic Energy Tech System (a joint venture between Tata group and South African Sasol); and the Radhikapur (West) block, allocated jointly to Rungta Mines, OCL India and Ocean Ispat.

The Bikram block, allotted to Birla Corporation, and the Khappa and Extension block, allocated to Sunflag Iron and Steel and Dalmia Cement, were also cancelled.

The companies whose bank guarantees have been forfeited include steel major SAIL, Abhijeet Infrastructure, Andhra Pradesh Mineral Development Corporation, Tenughat Vidyut Nigam and Chaman Metaliks.

Earlier, the inter-ministerial group had found lapses in the development of the blocks and had issued show-cause notices, asking companies to explain the delays.