Government has decided to deallocate a coal block in Odisha jointly allocated to four PSUs, including Odisha Mining Corp and Assam Mineral Development Corp for delays in production. In a letter addressed to the PSUs yesterday, the Coal Ministry said,the recommendation of Inter-Ministerial Group,IMG, has since been considered and accepted by the government to deallocate Mandakini B coal block .

The ministry also said in the letter that Bank Guarantee (BG) to the extent of 48.7 crore rupees which is 50 per cent of the BG related to the development of the coal block be invoked and deposited with the government.

Other PSUs to which the coal block was alloted are Meghalaya Mineral Development Corp and Tamil Nadu Electricity Board.

Mandakini B coal block was alloted in 2007 to the PSUs tomeet the coal requirement of their respective proposed power plants.

The IMG was formed in June under the Chairmanship of Additional Secretary in the Coal Ministry to review the progress of development of allocated coal blocks and associated end-use projects and to recommended action,including deallocation in case of delays.

The IMG consists of members from the ministries like Power, Steel and Commerce, among others.

The IMG has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and the government has accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline.