New Delhi: The Inter-Ministerial Group (IMG) on coal blocks has recommended de-allocation of two coal mines allocated to PSUs on the ground of companies not developing them, sources said. The IMG on Monday reviewed 10 coal blocks allocated to public sector companies (PSUs), including Chhattisgarh Mineral Development Corporation (CMDC) and Orissa Mining Corporation (OMC), an official said after the meeting.

"Of the 10 coal blocks it reviewed, IMG has recommended de-allocation of two blocks, including one Shankarpur/Bhatgaon II & Extn, alloted to CMDC," a source said.

In a few cases, the inter-ministerial panel has also recommended deposit of bank guarantee, he added.    The IMG on October 9 and 10 had examined 33 coal blocks allocated to public sector firms including Andhra Pradesh Power Generation Corporation, NALCO and MMTC which were issued notices for delay in production.

The panel has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and last month the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.

A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. The government had formed the IMG in July to review the progress of coal blocks allocated to companies for captive use.

The CAG had estimated that 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 auction.


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