The coal block scam has been the biggest news for days now; the latest development being an inter ministerial panel asking companies like Jindal Steel and Power, TATA Steel, Essar Power, ArcelorMittal, Sterlite Energy and Reliance Power to clarify the delays in developing the 58 coal blocks that were allotted to them for captive purposes.

These companies were allotted 58 blocks since 1998, on September 6, 7 and 8. However, reports also suggest that the IMG did not consider cancellation of any of the 58 blocks as of now.

Bloomberg TV India spoke to Mr Sushil Maroo deputy MD & group CFO at Jindal Steel & Power Limited on the entire coal block allocation issue. Mr Maroo said that “Coal block development is not an easy task.” It is difficult to get clearances for setting up coal blocks, he added. The IMG will ask the mentioned companies to give an explanation on why deadlines have not been met to start production.

Mr Maroo went on to said that changes in allocation policy should be prospective. CBI is checking credibility of documents submitted.

Source - Bloomberg

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