HT reported that the government may cancel the allocation of more than 50 of the 57 coal blocks mentioned in the recent CAG report if it finds that the mining projects have not made much progress. The move is aimed at halting the persistent attack on the UPA government after the Comptroller and Auditor General of India, the state auditor, estimated in a recent report that arbitrary allocation of 57 blocks to 25 private companies might have robbed the exchequer of an INR 186,000 crore potential earning.
Top sources told Hindustan Times that a decision on this is expected in the next few days, adding that the blocks likely to be de allocated have about 7 billion tonne of extractable coal. Some of these blocks are likely to be handed out to state owned Coal India Limited.
The sources told HT that the progress of projects of as many as 17 companies had so far been found to be inadequate.
The government is likely to kick off the auction process of coal blocks next year after credit rating firm Crisil submits its report on the methodology.
What's more, the sources said mining rights of many captive coal blocks handed out to private companies during the BJP led National Democratic Alliance rule between 1999 and 2004 might be cancelled.
An inter ministerial group, which is slated to meet in the next few days, will recommend a set of measures, including the likely cancellation of mining leases to companies that have not begun even the basic work, such as land acquisition or forest clearance.
Coal minister Mr Sriprakash Jaiswal, hinting that the cancellation of mining rights of captive coal blocks was under consideration and said that "We will take all steps that the IMG recommends."
In the wake of controversies shrouding coal mines allocation, an inter ministerial panel will decide next week the fate of 58 blocks which the private companies and PSUs failed to develop within allowed time.
The government has already issued de allocation notices to 35 government firms and 23 private companies which failed to develop the same allotted for captive use in the given time frame.
A top Coal Ministry official told PTI that "An Inter Ministerial Group, headed by Additional Secretary Coal Mr Zohra Chatterji will meet to decide on 58 blocks which were served de allocation notices."
The official clarified that the blocks, barring a few, are different from those mentioned in the CAG report. Government auditor CAG in its recent report tabled in Parliament stated that undue benefits to the tune of INR 186,000 crore were extended to private firms on account of allocation of 57 mines to them.
There were media reports that the government may cancel over 50 blocks mentioned in the CAG report.
Coal minister Mr Sriprakash Jaiswal said that "The blocks were allocated under a process. Monitoring the process of blocks development is done regularly and it is wrong to say that these will be cancelled. IMG will review their progress and take a final view on it."
Meanwhile, the government is likely to kick off the auction process of 54 identified coal blocks having a reserve of about 18.22 billion tonnes in 2013.
Mr Jaiswal had earlier said that the credit rating firm CRISIL is likely to submit its report on the methodology of auction soon.
Source - Hindustan Times
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Policy/Steam Coal/India
