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Coal ministry to send mine deallocation letters soon

September 24, 2012 20:01 IST
The coal ministry is likely to begin next week issuing deallocation letters to private firms whose mines were cancelled and those where bank guarantees were deducted for sitting idle on mines given to them for captive use, Coal Minister Sriprakash Jaiswal on Monday said.

"We are hopeful that from next week we will start issuing deallocation letters to all those firms whose coal blocks were deallocated and bank guarantee deducted," Jaiswal told mediapersons in New Delhi.

He also said that so far the coal ministry had deallocated seven coal blocks, while the government has yet to take a call on the recommendations of Inter-Ministerial Group for deallocation of another six coal blocks.

"The file for deallocation of six coal blocks is being sent to me," the minister said.

He also said so far the coal ministry had announced the deduction of bank guarantee of seven coal blocks.

"The file for deduction of bank guarantee of seven coal blocks as recommended by IMG is being sent to me. I will take a call on it and let you know accordingly," the minister said.

He also said," I have given my approval for no action against two coal blocks, while I have to still take a decision on the recommendation of the IMG for no action against another coal block," the minister said.

The minister said the IMG in total has reviewed 31 coal blocks of 51 private firms. "Now, we will take up those public firms which were issued show cause notices."

The IMG has so far recommended deallocation of 13 coal blocks and recommended deduction of bank guarantee in cases of 14 mines.

A total of 58 mines were given show cause notices for failure to develop the 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.

Replying to a question, Jaiswal said the ministry will take a call on whether the "deallocated blocks would go to Coal India, or be allocated through auction route".

When asked when Crisil, consultant to the Coal Ministry for fixing reserve price for auction of 54 mines, would submit its report, he said, "It (Crisil) has asked for another three weeks from coal ministry."

Image: Union Coal Minister Sriprakash Jaiswal

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