Amid controversy over coal block allocation, the government might take a final call next month on the fate of 58 mines, which companies have failed to develop. Coal Minister Sriprakash Jaiswal has directed officials to submit a final report on their status by September 15.
The government, in April, had already slapped cancellation notices on holders of these blocks, which include 35 government and 23 private companies for failing to develop the mines allotted for captive use in the given time frame.
"The minister has asked coal secretary S K Srivastava to expedite the review of 58 blocks and submit a final report on the status of the blocks by September 15 after going through the replies furnished by firms. Based on the report, the blocks may be de-allocated," a source said.
Before preparing a final report, an inter-ministerial group on coal blocks will take a review the status of blocks in its meeting which is likely on Monday, sources said.
Govt rules out cancellation of allocation of coal blocks
Unfazed by the Opposition protests in the wake of the Comptroller and Auditor-General report, the government today ruled out cancellation of allocation of coal blocks maintaining that no wrong has been done.
"I personally would be opposed to it as it would mean you are accepting your guilt... No wrong has been done anywhere," parliamentary affairs minister Pawan Kumar Bansal said.
Seeking to pick holes in the CAG report that has spoken of undue benefits of Rs 1.86 lakh crore to private players, Bansal suggested the methodology adopted by the government auditor was faulty and so were his assumptions.
The panel, headed by additional secretary in the coal ministry Zohra Chatterji and comprising representatives from different ministries may recommend cancellation of such blocks, which did not comply to the development norms.
The official said the blocks, barring a few, are different from those mentioned in the CAG report.
Sources said the firms in their replies furnished to the Ministry have cited various reasons, including land acquisition problems, delays in forestry and environment clearances and law and order problems. The government in April had began the process of issuing notices to companies that failed to develop the 58 coal blocks within the stipulated time.
The notices were issued to firms like Reliance Power's Sasan, Tata Power, Hindalco and Grasim Industries, ArcelorMittal, GVK Power, MMTC and others. Later in June, the government formed an IMG to review the progress of coal blocks allocated to companies for captive use. Of the total 195 coal blocks allocated to both public and private firms in over a decade, only 30 mines have begun production as per the government records. The government, last year had cancelled the allocation of 14 coal mines and one lignite to companies, including NTPC and DVC for failure to develop the blocks.
