Govt cancels coal block allotted to JSW & EMTA

The Union coal ministry, on the recommendation of the inter-ministerial group (IMG), on Monday deallocated Gourangdih ABC coal block that was allotted to Himachal EMTA Power Ltd and JSW Steel Ltd. The Rawanwara North coal blocks allotted to SKS Ispat and Power Ltd and Bhushan Steel Ltd’s New Patrapapa Coal block have also been deallocated on the recommendation of the IMG. Besides, the bank guarantee of Nerad Malegaon Block allotted to Gupta Metaliks & Power Ltd and Gupta Coal fields will be forfeited.

“We have accepted the recommendations the IMG made on Friday. We are waiting for the files of Saturday’s meeting and more mines will be cancelled in the coming days,” Union coal minister Sriprakash Jaiswal said.

The decision on the Lohari coal block of Usha Martin Ltd and Radhikapur East Coal allotted to Tata Sponge Iron Ltd is likely to be taken late evening and the coal ministry is likely to go by the recommendations of the IMG on these blocks as well. The IMG had recommended forfeiture of the bank guarantees on these coal blocks.

The CAG has indicted the coal ministry for causing a loss of Rs 1.86 lakh crore to the exchequer by allocating 58 coal blocks to private companies without any bidding process. In its report on the 58 coal blocks under review, the CAG has questioned the allocation process of at least 17 coal blocks to private companies.