IMG axe on three more coal blocks

The Inter-Ministerial Group (IMG) reviewing the controversial allotment of coal blocks for captive mining on Wednesday recommended cancelling those given to three companies, including Rungta Mines Ltd, due to production delays.

It also said the government should deduct bank guarantees given by six companies, including Arcelor Mittal India Ltd, regarding four blocks.

The recommendations will be placed before Coal Minister Sriprakash Jaiswal for approval.

So far, the minister has approved recommendations for cancelling the allocations of seven blocks held by private miners, including SKS Ispat, JSW Steel and Bhushan Steel.

The three blocks recommended for cancellation on Wednesday are Choritand Tailaya being developed by Rungta Mines and Sunflag Iron & Steel; North Dhadu by Jharkhand Ispat Pvt Ltd, Electrosteel Castings, Pavanjay Steel & Power Generation and Adhunik Alloys & Power Ltd; and the Gondkhari block held by Maharashtra Seamless, Dhariwal Infrastructure (P) Ltd and Kesoram Industries.

 

The four blocks where deduction of bank guarantees have been recommended by IMG are Seregarha by ArcelorMittal India and GVK Power (Govindwal Sahib) Ltd; the Moitra block by Jayaswal Neco; Durgapur II/Sarya by DB Power and the Dumri block held by Neelachal Iron & Steel and Bajrang Ispat.

The blocks facing action are part of the 29 under the IMG scanner.

The panel is chaired by the coal ministry’s additional secretary, Zohra Chatterji.

It began work earlier this month, after opposition parties’ demanded cancellation of all the 142 blocks allocated to private companies since 2004.

LOSING ASSETS
Deallocated/ recommended for deallocation			Bank guarantee deduction approved/recommended
Block	Reserves (Mt)	Company/Companies	Block	Reserves (Mt)

Company/Companies Bramhadih2.2Castron Mining LtdMarki Mangli II19.0Shree Virangana Steel Ltd Chinora20.0Fieldmining & Ispat LtdMarki Mangli III19.0Shree Virangana Steel Ltd Warora18.0Fieldmining & Ispat LtdMarki Mangli IV

19.0

Shree Virangana Steel Ltd Lalgarh (North)30.0DOMCO Stainless Fuels 
Pvt LtdNerad Malegaon19.5Gupta Metaliks & Power 
Ltd, Gupta Coalfields Ltd Gourangdih ABC68.8JSW Steel Ltd, Himachal 
EMTA Power LtdLohari9.9Usha Martin Ltd Rawanwara (North)174.0SKS Ispat LtdRadhikapur East115.0Tata Sponge Iron Ltd 
and others Patrapara1042.0Bhushan Steel & Strips 
Ltd and othersBijahan130.0Bhushan Ltd North Dhadu *NAJharkhand Ispat Pvt Ltd, 
Electrosteel Castings Ltd
and  two othersMoitra *215.7Jayaswal Neco Ltd Durgapur II/Sarya *91.6DB Power Ltd Choritand Tailaya *18.7Rungta Mines Ltd and 
Sunfled Iran & SteelSeregarha *83.3Rungta Mines Ltd and 
Sunfled Iran & Steel Gondkhari *29.9Maharashtra Seamless 
Ltd and othersDumri *18.0Neelachal Iron & Steel Ltd, Bajrang 
Ispat Pvt Ltd * These blocks have been recommended for de-allocation or revocation of bank guarantees                      Source: Coal ministry