Amid a raging row over coal block allocations, the Inter-Ministerial Group is set to recommend de-allocation of some coal blocks awarded to private firms out of 29 cases under review and other punitive action will be taken against several others.
The IMG, which heard representatives of 29 coal block allottees last week out of 58 allocations under focus, today scrutinised at least six cases in the context of why production had not been started within the prescribed timelines. The IMG is understood to have scrutinised the blocks allotted to Monnet Ispat and Energy, Domco Smokeless Fuel and Tata Steel among others.
The Group will have two more meetings to complete the task of scrutinising all the 29 allotments, the sources said. The next meeting will be on Friday. A decision by the Coal Ministry on the basis of IMG's
recommendations is likely to be announced next week, well past the deadline of September 15.
Sources indicated that de-allocation would be recommended in a few cases and while several others could face punitive action like encashment of bank guarantees.
"Some decisions have been taken, which could be de-allocation," a member of the IMG said but did not specify how many. The allotments, where it is established that production could not start for genuine reasons like lack of clearances, may be let off with a "caution", the sources said.
Significantly, the Finance Ministry, which had earlier reportedly objected to any de-allocation, today gave a
go-ahead for such a step.
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