Coal controller says de-allocate blocks to Jindal Steel, Bhushan Steel

New Delhi: In a major development in connection with the coal blocks allocation controversy, the coal controller report recommended the Inter Ministerial Group (IMG) to de-allocate coal blocks to Jindal Steel and Bhushan Steel.

The coal controller report accessed by CNN-IBN covers as many as 18 companies and will give its final recommendations to the Coal Minister by September 15.

In its report, the CCO has also recommended extension of deadline for many companies as clearances are delayed, while 18 coal block firms are likely to lose their bank guarantees.

The companies were raided by the Central Bureau of Investigation (CBI) last week after FIRs were filed against five of them in the coal case.

As criminal proceedings are underway, the administration probe is also gaining pace.

The IMG completed meetings with many companies last week. One key document that they will look at is the coal controller's report.

Here is a look at some of the companies in the controller's report:

Jindal Steel and Power Limited: Congress MP Naveen Jindal's company has been faulted for not doing enough in its coal block.

The Controller says that against a total project cost of Rs 422 crore, the company has put in only Rs 9.45 crore and has not started production. The company has been given a lifeline till June 2013 and is recommended for de-allocation after that.

Bhushan Steel Limited: The company has not given details of its investments and has not allowed the coal controller to inspect the premises. Since production has not started, the controllers has recommended that IMG may de-allocate the coal block and deduct a bank guarantee of Rs 70 crore.

SKS Ispat: The company, with links to Union Minister Subodh Kant Sahai, invested only Rs 55 crore against a project cost of Rs 500 crore. According to the coal controller report, there is no office or other infrastructure.

However, the controller has given extension to SKS till 2013 as Environment Ministry clearances are delayed. The company, however, loses Rs 2.5 crore in bank guarantees.

Jayaswal Neco: The company, which is a part of the Jayaswal Group of Companies, owned by Manoj Jayaswal, which was raided by the CBI last week, has invested only Rs 34 crore against a project cost of Rs 130 crore.

The project has been given a six-year extension till 2015 as state clearances are yet to come by. The report recommends deducting bank guarantee of Rs 4 crore.

JSW Company: Naveen Jindal's cousin Sajjan Jindal's company JSW has invested only Rs 60 crore against a total project cost of Rs 396 crore. The report also says the Odisha project has not started production. The recommendation is to deduct bank guarantee of Rs 56 crore.

Tata Steel: The company is also hauled up for not investing. The controller has recommended extension of production deadline by 26 months and a deduction of Rs 14 crore as bank guarantee.

The recommendations along with responses from the coal companies will form the basis of the IMG report that is eagerly awaited. If the coal controller's report is to go by, many companies could lose some bank guarantee and most could get an extension as clearances have also been delayed.

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