The government today said mining licenses of some more companies would be cancelled. Speaking to reporters after attending a meeting on infrastructure projects convened by Finance Minister P Chidambaram, Coal Minister Sriprakash Jaiswal said
some more coal blocks would be de-allocated.
Yesterday, the government had decided to de-allocate four blocks and to deduct bank guarantees of three others belonging to private companies for failing to meet timelines on production and development of mines.
The blocks recommended for e-allocation included Bramhadih Block in Jharkhand allocated to Castron Mining Ltd in 1996, Chinora and Warora (southern part) blocks in Maharashtra given to Fieldmining and Ispat Ltd in 2003 and Lalgarh (North) block in Jharkhand allotted to DOMCO Smokeless Fuels Pvt Ltd in 2005.
The IMG had also recommended deduction of Bank Guarantee (BG) in case of Marki Mangli-II, III and IV Blocks in Maharashtra allocated to Shri Virangana Steels Ltd and deposit of BG by Monnet Ispat & Energy Ltd for Utkal B2 Block in Odisha allocated to it. AIR correspondent reports, the blocks were de-allocated after the controversy over
the allocation of coal blocks broke out with the CAG estimating undue benefits of 1.86 lakh crore rupees to private firms due to allocation of 57 mines sans auction.