The Government has accepeted the recommendations of the Inter Ministerial Group, IMG, for the de-allocation of four coal blocks and encashment of bank guarantees of three companies for failing to meet timelines on production and development of mines.

Commenting on the development, Coal Minister Sriprakash Jaiswal said his Ministry is taking action agaisnt the erring companies.

The IMG also recommended that in the case of Utkal B2 Block allocated to M/s Monnet Ispat and Energy Limited, where there was substantial progress but no provision for Bank Guarantee, the allottee may be asked to submit Bank Guarantee amounting to three years royalty within a period of one month from date of letter in this regard failing which the block may be deallocated.

The IMG will meet again today.