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Panel recommends deallocation of 12 coal blocks allotted to private sector, government accepts recommendations

The government has accepted IMGs recommendations, sources said. The ministerial panel was constituted on July 3, 2012, to review the progress of the coal blocks allotted to private and public sector firms.


The Inter Ministerial Group (IMG) reviewing the development of coal blocks concluded its task today. After more than 10 meetings since it was set up, the panel recommended the deallocation of 12 blocks awarded, since 1998, to private firms.


The government has accepted IMG’s recommendations, sources said. The ministerial panel was constituted on July 3, 2012, to review the progress of the coal blocks allotted to private and public sector firms.


Private companies owning the 28 coal blocks under review were sent show cause notices in May this year asking them why their licenses should not be revoked because of the delay in developing their respective blocks.


The big companies on the deallocation list include JSW Steel, owned by industrialist Sajjan Jindal, and the Bombay Stock Exchange-listed Maharashtra Seamless (a part of the D.P. Jindal Group, a company owned by Sajjan Jindal’s cousin), which owns the license for the Gondkhari coal block in Maharashtra.


The IMG has also recommended the deallocation of the New Patrapara coal block in Orissa awarded to a consortium of Bhusan Steel (owned by the Singhal family), BSE-listed Adhunik Metaliks, Deepak Steel, and BSE-listed Orissa Sponge Iron.


The panel gave a clean chit to only three of the 28 blocks. While the Moher and Moher Amlohri blocks have been allocated to Anil Ambani’s Reliance Power for its Sasan Ultra Mega Power Project, the Pachmo block in Jharkhand has been allotted to Tata Steel.


The companies whose bank guarantee will be encashed include Naveen Jindal-owned JSPL (Jitpur coal block in Jharkhand), Usha Martin, Monnet Ispat, GVK Power and Tata Sponge.


For some politically controversial coal blocks, the IMG has recommended either deallocation or a deduction in bank guarantee. The coal block license to SKS Ispat and Power, a company which drew attention because of its connection with the brother of Union Tourism Minister Subodh Kant Sahay, will be revoked.


For Jayswal Neco, a company linked to Manoj Jayswal of Abhijit Group, which in turn has links with JAS Infrastructure and Congress Member of Parliament P. Vijay Darda and his family, the IMG has recommended deallocation.


The panel has recommended revocation of licences to IST Steel & Power, promoted by the son of P.C. Gupta, a former minister for corporates. IST Steel & Power along with Gujarat Ambuja Cements and Lafarge was allocated the Dahegaon Makardhokra coal block in Chattisgarh in 2009.


With the review of the 28 coal blocks completed, the IMG will start reviewing the 30 odd blocks allocated to public sector companies and organisations in the states and Centre. The IMG is likely to begin this process after its chairperson Zohra Chatterjee, Additional Secretary in Coal Ministry, rejoins work in about 7-10 days.





1.     Electrosteel Castings & Others: North Dhadu block


2.     Rungta Mines & Sunflag Iron & Steel: Choritand Taliya block


3.     Electrotherm India and Grasim Industries: Bhaskarpara block


4.     IST Steel & Power, Gujarat Ambuja Cements, Lafarge: Dahegaon Makardhokra block


5.     Maharastra Seamless,Dharial Infrastructure & Kesoram Ind: Gondkhari block


6.    JSW Steel and Himachal EMTA Power Gourangdih ABC block


7.     SKS Ispat and Power: Rawanwara North block


8.     Bhushan Steel Ltd. and others: New Patrapara block


9.     Castron Mining: Brahmdiha block


10.                        Fieldmining and Ispat Limited: Chinora and Warora (South) block


11.                        DOMCO Smokeless Fuels: Lalgarh (North) block


12.                       Bihar Sponge Iron Company: Macherkunda block






1.    Jayaswal Neco: Moitra block


2.      Arcelor Mittal india Ltd & GVK power: Seregarha block


3.     Neelachal Iron & Steel & Bajrang Ispat: Dumri block


4.     DB Power Ltd: Durgapur II/Sariya block


5.    Gupta Metaliks & Power and Gupta Coalfields: Nerad Malegaon block


6.     Usha Martin: Lohari block


7.     Tata Sponge Iron Ltd. & others: Radhikapur (East) block


8.     Bhushan Ltd: Bijahan block


9.     Shri Virangana Steels: Marki Mangli-II block


10.                        Shri Virangana Steels: Marki Mangli-III block


11.                        Shri Virangana Steels: Marki Mangli IV block


12.                        Monnet Ispat & Energy: Utkal B2 block


13.                       JSPL: Jitpur block






1.    Reliance Power (Sasan UMPP): Moher block


2.     Reliance Power (Sasan UMPP): Moher Amlohri block


3.    Tata Steel: Pachmo block


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