IMG to meet today to decide fate of 14 coal mines

After recommending deallocation of eight blocks alloted to PSUs, the Inter-Ministerial Group (IMG) is likely to meet on Monday to decide the fate of 14 more mines allotted to public sector firms. "The IMG is likely to meet tomorrow to decide the fate of 14 coal blocks allotted to public sector firms," an official in the coal ministry said. The IMG, early this month, had recommended de-allocation of eight such blocks after scrutiny of 19 cases of public sector firms. The panel, whose earlier recommendation for de-allocation of 13 mines to private firms has already been accepted by the government, had also asked for imposition of bank guarantees in six cases and deduction in two cases. The IMG on October 9 and 10 had examined 33 coal blocks allocated to public sector firms 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 progress of coal blocks allocated to firms 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.