Don’t miss the latest developments in business and finance.

IMG for de-allocation of two more coal mies

Image
Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 5:29 AM IST

One of the companies whose block was recommended for de-allocation has the son of former Corporate Affairs Minister Prem Chand Gupta as one of its directors.

"The IMG recommended de-allocation of two coal blocks - Bhaskarpara, allotted to Grasim Industries and Electrotherm and Dahegaon Markardhokra IV, given jointly to IST Steel & Power, Gujarat Ambuja Cement and Lafarge India," an official source told PTI.

Gaurav Gupta, son of Prem Chand Gupta, is a director in IST Steel and Power which owns the majority 53 per cent stake in the Dahegaon Markardhokra block.

Dahegaon-Makardhokra IV block was given to IST Steel and Power, along with cement firms Gujarat Ambuja and Lafarge India, in June 2009. The block has a total of 48.84 million tonnes (MT) of extractable reserves.

The other block Bhaskarpara was allotted to Electrotherm (India) Ltd and Grasim Industries jointly on November 21, 2008 for a sponge iron project. It has extractable reserves of 18.67 MT.

Both the blocks are in Chhattisgarh and find mention in the latest CAG report, which says 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 bidding.

More From This Section

The IMG, which has concluded the scrutiny of 29 blocks allotted to private companies is likely to begin review of 29 more allotted to government companies from October 9, an official source said.

Apart from recommending de-allocation of 13 blocks, the panel has so far recommended deduction of bank guarantee in cases of 14 mines. (MORE)

  

Also Read

First Published: Sep 20 2012 | 5:25 PM IST

Next Story