The Inter-Ministrial Group, IMG today recommended de-allocation of Macherkunda block given to Bihar Sponge. An official source told AIR Correspondent that the IMG looking into the coal blocks allocation, has also asked for deducting bank guarantee of two others – Jitpur, given to Jindal Steel and Power Ltd, JSPL and Chitarpur, allotted to Corporate Ispat.

The IMG has so far recommended de-allocation of eight coal blocks. The government has approved the deallocation of 7 blocks so far.

Macherkunda block in Jharkhand was given to Bihar Sponge in August 2008 and has an extractable reserve of 8.82 Metric Tonne. Likewise, Chitarpur block in Jharkhand, which was given to Corporate Ispat and Alloys in September 2005, has 58.6 MT of extractable reserves.

The Jitpur mine in Jharkhand was allotted to JSPL in February 2007 and has an extractable reserve of 65.53 million tonnes. The coal from it was meant to be used for an end-use power plant with a capacity of 2X600 MW.

The panel which is scrutinising 29 out of 58 cases to which notices had been issued, reviewed three cases today. It, however, did not recommend the deduction of bank gaurentee or deallocation of Moher and Moher Amlohri blocks allotted to Sasan Power Limited and Pachmo Block allotted to Tata Steel Limited.

The IMG will meet again tomorrow.