IMG wants cancellation of 2 blocks of Bhushan Steel, SKS

New Delhi: The Inter-Ministerial Group on coal blocks yesterday decided to recommend cancellation of two mines awarded to Bhushan Steel and SKS Ispat & Power, and forfeiture of bank guarantees for two other blocks.

“The IMG has recommended cancellation of two blocks given to Bhushan Steel and SKS Ispat & Power, and suggested the forfeiture of bank guarantees for two other mines. It scrutinised four cases in all today,” a source, who attended the five-hour long meeting of the IMG, told PTI.

If the recommendations of the Inter-Ministerial Group (IMG) are accepted by the Coal Ministry, the number of blocks cancelled for insufficient progress would go up to seven.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

Bhushan Steel was allotted New Patrapara block in Odisha in January, 2006. The block has an extractable reserve of 316.09 million tonnes. It was meant to be used for making sponge iron, which finds application in steel manufacturing.

[caption id=“attachment_457515” align=“alignleft” width=“380”]  The IMG is scrutinising 29 blocks awarded to private firms out of the total 58 which were given show-cause notices for delays in developing mines.[/caption]

The blocks also finds mention in the CAG report which had estimated that the company got undue benefit to the tune of Rs 9,338 crore.

The source said a block belonging to SKS Ispat and Power, in which Tourism Minister Subodh Kant Sahai’s brother held the position of “honorary director”, has also been recommended for de-allocation. However, sources did not disclose the name of the block.

The panel has so far scrutinised the replies furnished by 18 coal block allottees, including four today, in its third meeting in the last four days. It would meet again on Monday.

The IMG is scrutinising 29 blocks awarded to private firms out of the total 58 which were given show-cause notices for delays in developing mines.

Last evening, the panel had recommended cancellation of Gouganrdih ABC mine, given jointly to JSW Steel and Himachal EMTA, in 2009, according to sources.

Some of the blocks recommended for de-allocation find mention in the CAG report, which had recently estimated that undue benefits to the tune of Rs 1.86 lakh crore have been accrued to private firms due to allocation of 57 mines without auction.

PTI