Govt might deallocate 8-9 coal blocks

The government is likely to deallocate eight or nine coal blocks as the companies in question did not develop these within the stipulated time.

The development comes in the wake of the government reviewing the progress of 61 allocated blocks to firms such as Tata Steel, Hindalco Industries and Jindal Steel & Power Ltd. The companies were earlier issued notices for delays in mine development.

"Today, the Inter-Ministerial Group (IMG) reviewed the progress of around 30 coal blocks. The IMG recommended deallocating eight-nine blocks," a source told PTI. The duration of the meeting is yet to be finalised, the source added, and also refused to divulge names of the companies whose mines would be deallocated.

The government had earlier decided to deallocate all the captive blocks without environment and in-principle forest clearances. It had issued show-cause notice to allottees of 61 such mines. This followed the Supreme Court posing some tough queries on the allocation process and questioning the Centre over the functioning of the screening committee that made allotment recommendations.

"The following coal blocks will be deallocated... Coal blocks where environmental clearance and forest clearance stage-I (in-principle) have not been obtained," the coal ministry had earlier said in a letter to allocatees of 61 blocks.