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IMG recommends de-allocation of 3 more coal blocks to PSUs

Press Trust of India
Nov 20, 2012 at 08:51pm IST

New Delhi: Winding up the exercise of scrutiny of mines allotted to PSUs which failed to develop coal mines within stipulated timeframe, the Inter-Ministerial panel on coal blocks on Tuesday recommended de-allocation of three more blocks.

"The IMG has recommended de-allocation of three blocks today including one allotted to Jharkhand State Mineral Development Corporation (JSMDC)," a source close to the development said. However, the names of other two blocks could not be obtained.

The IMG reviewed 14 cases on Tuesday in a marathon meeting, which lasted for over six hours. With the new development, the number of cases recommended for cancellation of mines to PSUs has risen to 11. Earlier in November, it had recommended de-allocation of eight such blocks after scrutiny of 19 cases.

IMG recommends de-allocation of 3 more coal blocks

The IMG reviewed 14 cases on Tuesday in a marathon meeting, which lasted for over six hours.

The IMG has completed the exercise of scrutiny of blocks allotted to public sector firms, which were issued show cause notices for failing to develop mines within stipulated timeframe. The panel's earlier recommendation for de-allocation of 13 mines to private firms has already been accepted by the government.

The IMG on October 9 and 10 had examined 33 coal blocks allocated to public sector firms including Andhra Pradesh Power Generation Corporation, NALCO and MMTC which were issued notices for delay in production.

The panel has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and last month the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.

A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use. The CAG had estimated that undue benefits to the tune of Rs 1.86 lakh crore might accrue to private firms on account of allocation of 57 mines to them without auction.

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