Coal news and updates

IMG moots de-allocation of 2 Tata Steel coal blocks

February 24: The Inter-Ministerial Group, at its meeting held on February 7-8, 2014, recommended de-allocation of Kotre-Basantpur and Pachmo coal block block allocated to Tata Steel.

The IMG noted that the company had obtained the EC but FC stage 1 has not yet been obtained. The IMG further noted that the MoEF, in its status report, had informed that it had not received the proposal seeking FC stage I.

The IMG also recommended de-allocation of Brahampuri (MP) coal block allocated to Pushp Steel & Mining. It noted that the company had not obtained FC stage 1 clearance. The IMG further noted that the CBI had registered an FIR against the allocatee.

The IMG also recommended deduction and encashment of proportionate bank guarantee with regard to the Sitanala coal block allocated to Steel Authority of India (SAIL). Consequently, the BG amounting to Rs 0.57 crore will have to be deposited with the government.

The IMG said, though the EC has been granted, the mining lease is pending. Also, the scheduled date of production was April 11, 2011, but the mine is yet to become operational.

The IMG, at the same review meeting, also recommended no action against several blocks. These include Andal East (allocated to Bhushan Steel, Rashmi Cement. and Jai Balaji Industries, Utkal b-1 (allocated to Jindal Steel & Power), Utkal b-2 (allocated to Monnet Ispat & Energy).

These are part of the 61 blocks that have not come into production.