Deduct bank guarantee of mine given to Hindalco, Tatapower:IMG

The decision to deallocate Gourangdih ABC coal block, jointly given to JSW Steel, a company owned by Sajjan Jindal, brother of Congress MP Naveen Jindal and Himachal EMTA was taken on the recommendation of the Inter-Ministerial Group (IMG).

The panel is scrutinising 29 out of 58 cases that were served show cause notices for non-development of mines during prescribed timeline.

"I have approved the IMG's recommendations given on Friday and will take a call on others," Coal Minister Sriprakash Jaiswal said.

The IMG, on Friday had recommended deallocation of the Gourangdih ABC mine, given jointly to JSW Steel and Himachal EMTA, in 2009, having an extractable reserve of 61.54 million tonnes (MT).

With this the total number of blocks approved for deallocation has gone up to five out of total seven recommended by the IMG so far. Government has also approved deducting bank guarantee (BG) in case of five mines out of total eight recommended by the IMG so far.

Meanwhile, the panel decided to recommend deduction of bank guarantee in the case of a mine jointly allotted to Aditya Birla Group's flagship firm Hindalco and Tata Power due to delays in development of the block.

"The IMG today recommended deduction of bank guarantee of Tubed coal block in Jharkhand, allotted to Hindalco and Tata Power in August 2007," an official source told PTI.

The panel could take up only Tubed block for scrutiny today and would meet again tomorrow to scrutinise another six of seven cases, which failed to adhere to the timeframe for developing the mines given to them, sources said.(MORE)