Ministry of Coal has de-allocate Bhatgaon coal block of Chhattisgarh. According to the letter written to the Chairman of Chhattisgarh Mineral Development Corporation,CMDC, the Shankarpur Bhatgaon – II and extension coal block allocated to CMDC is de- allocated.

The CMDC formed a joint venture to develop this coal block with a Nagpur based firm SMS Infrastructure of BJP leader Ajay Sancheti. Sancheti is known to be close to BJP President Nitin Gadkari.

The letter of the Ministry to the company says, the company will not be eligible for allocation of coal block in lieu of the de-allocated coal blocks.

The bank guarantee of 1 crore 59 lakh is also forfeited. The ministry took this action on the basis of recommendations of the Inter-Ministerial Group.

The Group on coal blocks has recommended de-allocation of two coal mines allocated to PSUs on the ground of companies not developing them.