Deallocate 3 mines, deduct bank guarantee of 4 blocks: IMG

The panel also recommended deduction of bank guarantee of four mines including one given jointly to the world's largest steel producer ArcelorMittal and GVK Powers, an official statement said.

It is likely to begin review of 29 more blocks, allotted to government companies from October 9, an official source told PTI adding, tomorrow it will review mines including that given to Grasim Industries and IST Steel & Power.

With today's action, the IMG has so far recommended de-allocation of 11 blocks and deduction of bank guarantee in cases of 14 others. A total of 58 mines were given show cause notices for failure to develop blocks within stipulated timeline.

"The IMG after deliberations today recommended deallocation of three more blocks... North Dhadu allotted to Electrosteel Castings, Choritand Telaiya allotted to Rungta Mines and Gondkhari block allotted to Maharashtra Seamless," the statement said.

It also recommended bank guarantee deduction of Seregarha block given to ArcelorMittal and GVK Power, Moitra block allotted to Jayaswal Neco, Dumri block given to Neelachal Iron & Steel and Durgapur II/ Sariya block allotted to DB Power, it added.

Most of the blocks recommended for action today find mention in the latest CAG report which had recently estimated that the financial impact of the benefit to the private allottees due to allocation of coal blocks will be about Rs 1.86 lakh crore. (MORE)