The Coal Ministry has decided to de-allocate two coal blocks, one each of Chhattisgarh Mineral Development Corporation and Odisha Mining Corporation, for delaying production from the mines. In case of Chhattisgarh Mineral Development Corporation, the Ministry has also forfeited 50 percent of bank guarantee related to the development of coal block.
The Inter Ministerial Group (IMG) had recommended de-allocation of 13 coal blocks allocated to private companies and 11 blocks to Public Sector Undertakings (PSUs). It had also recommended deduction of bank guarantee in case of 14 blocks allocated to private firms and 5 blocks to PSUs, besides imposing bank guarantee in one coal block of a private company and in 11 coal blocks of PSUs. The Government has accepted the recommendations and initiated action accordingly.
The IMG was constituted in June this year to review the progress of coal blocks allocated to firms for captive use.