IMG review of coal blocks concludes, report on Monday

"All the coal blocks on agenda for three days (September 6-8) have been reviewed," Zohra Chatterji, Additional Secretary in the Coal Ministry who headed the IMG, said today.

After submitting the report to the Coal Ministry on Monday, it will be forwarded to the Prime Minister's Office before September 15.

The panel is reviewing the progress of coal blocks allocated to private firms without auction. The IMG meeting took place in the backdrop of the CAG estimating undue advantage to private companies to the extent of Rs 1.86 lakh crore in the absence of auction.

Most of the monsoon session of Parliament was washed out with the Opposition, mainly BJP, demanding resignation of Prime Minister Manmohan Singh. He had held the coal portfolio during UPA-1 when most of these blocks were allocated.

During the three-day IMG meeting, all the 29 allottees gave progress reports of their blocks and several of them said delays in starting the production resulted due to lack of various clearances from different state governments.

Coal block allottees, including Tata Steel, Reliance Power, JSW, Grasim Industries, Kesoram Industries, IST Steel & Power, SKS Ispat and Power, Bihar Sponge Iron, appeared before the panel during IMG's three-day review exercise.

Before the start of the review exercise, the Coal Ministry had said on September 3 that the latest progress as reported by the Coal Controller would also be taken into account by the IMG "before recommending on the action against the coal block allottees".

The IMG has also firmed up the guidelines for proportionate deduction of Bank Guarantees for failure to achieve milestones for development of the block, it said. (More)