IMG recommends de-allocation of four coal mines

The IMG also recommended encashing of bank guarantee of three companies

The government today de-allocated 4 coal blocks on the recommendations of Inter Ministerial Group (IMG) on coal due to the absence of an end use plant and no  mining plan so far.

De-allocation has been done for Castron Mining Ltd, Field Mining and Ispat Ltd and Domco Smokeless Fuels Pvt Ltd. While Castron Mining Ltd and Domco Smokeless Fuels Pvt Ltd have one block each, Field Mining and Ispat Ltd owns two blocks.

The IMG in its meeting on September 12 took view of the five companies which were allocated eight coal blocks.
 
It also recommended that in the case of Utkal B2 Block allocated to M/s Monnet Ispat & Energy Limited, where there was substantial progress but no provision for bank guarantee, the allocattee may be asked to submit bank guarantee amounting to three years royalty within a period of one month from date of letter in this regard failing which the block may be deallocated.
 
The IMG deliberated upon the broad parameters which may constitute substantial progress of coal block and decided that purchase of GR, Approval of Mining Plan, Grant of Environment Clearance, status of Forest Clearance and progress made in land acquisition shall constitute a basic requirement for evaluating progress.
 
Physical status of End Use Plant (EUP), investment made and expected date of opening of mine and commissioning of EUP shall also be a material consideration.

Where there is no provision for Bank Guarantee (BG) and the block is not found fit for de-allocation and there is substantial progress, the IMG may recommend that the allocattee may be asked to submit a BG. The amount of BG that may be asked for would be fixed factoring in the time elapsed since date of allotment.
 
The IMG would continue examination of remaining cases that have been heard in its next meeting scheduled to be held on September 14 and will hold further meetings as may be required for completing recommendations.