A high-level government panel set up to recommend cancellation of coal blocks held by errant captive miners is understood to have given its recommendation for de-allocating a block held by JSW Steel Ltd and Himachal Emta Power Ltd.
A coal ministry official, however, denied to confirm the development.
The block, Gourangih ABC in Raniganj coalfield, West Bengal, was jointly allocated to the two companies in July 2009. The block, with geological reserves of 129 million tonnes, was expected to come into production by January 2013. The acreage has an approved mining plan with production capacity of 2.5 Mt per annum. However, forest clearance and land acquisition are still pending. The Comptroller and Auditor General (CAG) had also named the Gourangdih ABC block in its report on August 17.
The inter-ministerial group (IMG) met for the sixth time today since September 6 and discussed its earlier review of seven coal blocks. These acreages include Kotre Basantpur block held by Tata Steel, Tubed held by Tata Power and Hindalco, Moher & Moher Amlori Extn being developed by Reliance Power, Patraparaj held by Bhushan Steel and Lohari block awarded to Usha Martin.
An official word from the government on the blocks discussed today is expected only on Monday.
The panel, headed by coal ministry’s Additional Secretary Zohra Chatterji, had cancelled allotments of four blocks held by three companies on Thursday after a review found their progress severely wanting.
The IMG has the task of deciding the fate of 58 blocks, including 29 blocks of private companies, where progress was found deficient by the group, and were issued show-cause notices in May this year.