A total of 90 coal blocks face de-allocation threat

Sep 03, 2012, 14:04 IST | Agencies

Amid the raging row over coal block allocation, as many as 90 mines face the threat of de-allocation as these are under scanner for non-production.

Of these, 58 coal blocks are in the immediate focus with an Inter-Ministerial Group (IMG) set to decide their fate today. 

The government has already issued de-allocation notices to these 58 blocks -- 33 alloted to government firms and 25 to private entities.

Coal block allocation
90 mines face the threat of de-allocation over coal block row

Besides these, there are 32 more whose cases would be reviewed by the IMG in its subsequent meetings, sources said. These 32 cases had been reviewed by the IMG in its previous meeting, they said.

Coal Minister Sriprakash Jaiswal had said yesterday that any number of coal blocks could be cancelled if found that allocation was made in a wrongful manner or failed to start production in the stipulated time frame.

"On the basis of the IMG report, the allocations which were made in a wrongful manner or those allottees who have failed to start production of coal in a time-bound manner may face action. Any number of coal blocks can be cancelled," Jaiswal had said.

Of the total 195 coal blocks allocated to both public and private firms over a decade, only 30 mines have begun production as per the government records. In its recent report tabled in Parliament, the CAG stated that undue benefits to the tune of Rs 1.86 lakh crore were extended to private firms on account of allocation of 57 mines to them without auction.

The IMG comprising representatives from different Ministries may recommend cancellation of such blocks, which did not comply to the development norms.

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