Ministerial panel reviews 29 coal blocks for production delays

Blocks without green nod and stage-I of forest clearance will be cancelled as part of SC-monitored probe in Rs 1.86 lakh cr coal scam

An Inter-Ministerial Group (IMG) today reviewed the development progress of 29 coal blocks allocated to 31 companies. Of these, allocation of blocks without environmental clearance and stage-I of forest clearance obtained will be cancelled as part of the Supreme Court-monitored probe in the Rs 1.86 lakh crore coal allocation scam.

The panel, headed by coal ministry’s additional secretary A K Debey, reviewed the reasons for delay and documentary proof submitted by the companies including Corporate Ispat, Jayaswal Neco, Tata Steel, Rungta Mines, Essar Power, Arcelor Mittal, GVK Power, CESC, Jas Infrastructure, Mukund Ltd, Abhijeet Infrastructure and Bhushan Power.

The review is part of the scrutiny of 61 coal blocks allocated to 41 companies over two days which are facing cancellation of licenses due to delays in commencing production. The rest 32 blocks would be taken up for review on Saturday.

The coal ministry had told the companies in a January 16 letter blocks where environment clearance and stage-I of forest clearance have not been obtained will be cancelled. The ministry will also cancel allocations of blocks which were unexplored or partially explored at the time of allocation but prospecting license (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 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 “something has gone wrong” in allocation and review of the blocks.