The Government has decided to de-allocate one more coal block, Gourangdih ABC, jointly given to JSW Steel and Himachal EMTA. It also decided on deduction of bank guarantees of two allottees for failing to develop mines in time. With this, the government has approved cancellation of licenses of five coal blocks, out of a total of seven recommended by the Inter-Ministerial Group, IMG, so far. The IMG is scrutinising the award of 29 blocks to private parties. The block de-allocated yesterday has 61.54 million tonnes of extractable reserves and the coal from the mine was meant to be used for a power project. The block finds mention in the CAG report as well. The government auditor had said the allottees of the block, located in West Bengal, might have accrued undue benefit to the tune of 1,818 crore rupees.

Earlier, on September 13th, the government had decided to de-allocate four blocks. Meanwhile, the panel is also to decide the fate of about six more coal mines allocated to private firms that were issued notices for delaying production. The panel has so far scrutinised the replies furnished by 18 coal block allottees out of 29, in its three meetings last week.