Coal blocks allotted to big firms may be scrapped, JSPL, Tata Power at risk

Oct 18 2013, 09:11 IST
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The inter-ministerial group (IMG) looking into the case has shortlisted 30 blocks. The inter-ministerial group (IMG) looking into the case has shortlisted 30 blocks.
SummaryCoal ministry is preparing to cancel the allotment of some mega blocks.

Within days of the CBI naming Aditya Birla Group chief Kumar Mangalam Birla and former coal secretary PC Parakh in its 14th FIR in the blocks allocation case, the coal ministry is preparing to cancel the allotment of some mega blocks including those of Jindal Steel & Power Ltd (JSPL), Tata Power Ltd, NTPC and Steel Authority of India Ltd.

The inter-ministerial group (IMG) looking into the case has shortlisted 30 blocks. The group is set to meet next week. Show cause notices have already been served a month ago to the allottees of each block pointing to the defaults in meeting milestones.

The ministry will take stock of the replies made by the companies. Sources in the ministry said that most of the replies are not adequate.

The blocks include, JSPL’s Amarkonda Murgadangal in Jharkhand, Utkal 1B and Ramchandi Promotional block in Orissa.

The investigating agency has, so far, filed 14 FIRs and two preliminary enquires in connection with the alleged irregularities and criminal conspiracy in allocation of these coal blocks between 2006-09.

Other big firms which may face cancellation of allotments are Tata Steel and Adhunik Thermal Energy’s Ganeshpur block in Jharkhand and Tata Power’s Mandakini A block in Orissa. The block was jointly allotted to Tata Steel, Jindal Photo and Monnet Ispat & Energy. GVK Power’s Tokisud North mine in Jharkhand is also under the IMG’s scanner.

Among public sector firms, NTPC’s Pakri Barwadih, Kerandari, Chatti Bariatu and Chatti Bariatu South blocks and SAIL’s Sitanala mine in Jharkhand would be subjected to scrutiny too.

Another state-run power producer Damodar Valley Corporation may lose Khagra Joydev block in West Bengal and Saharpur Jamarpani mine in Jharkhand. Sesa-Sterlite group company Balco may lose Durgapur-Taraimar block in Chhattisgarh.

Even the country’s biggest iron ore producer NMDC may lose its Shahpur West Block in Madhya Pradesh.

Since 1993, the government had allotted 218 coal blocks to various public and private sector companies of which allotments of 47 blocks have been cancelled so far. Pressure from the Supreme Court-monitored CBI investigation has made the ministry move fast.

The IMG has met 28 times so far. Interestingly, the panel is proceeding against the allottees at a time when the CBI has registered FIRs against some of the companies.

With lower coal share, Orissa plan shelved: NLC

New Delhi: Neyveli

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