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IMG calls for cancellation of yet another coal block

The inter-ministerial group (IMG) on Tuesday recommended the cancellation of one more coal block, Macherkunda, and deduction of bank guarantees in case of another two ? Jitpur and Chitarpur ? for delay in development work.

The inter-ministerial group (IMG) on Tuesday recommended the cancellation of one more coal block, Macherkunda, and deduction of bank guarantees in case of another two ? Jitpur and Chitarpur ? for delay in development work. The Macherkunda block belongs to Bihar Sponge Iron while Jitpur and Chitarpur are allocated to Jindal Steel and Power and Corporate Ispat.

The Centre has revoked allocation of three more coal blocks ? New Patrapara coal block of Bhushan Steel, Rawanwara North of SKS Ispat and Power and Gourangdih ABC, which is jointly allocated to Himachal EMTA Power and JSW Steel ? taking the total number of cancelled blocks to seven. While the IMG had recommended cancellation of these blocks on Saturday, the coal ministry signed the cancellation letters on Tuesday.

The government had already cancelled the allocation of Castron Mining’s Brahmdiha block, Fieldmining and Ispat’s Chinora and Warora (Southern Part) blocks and DOMCO Smokeless Fuels’ Lalgarh (North). So far, the government has cancelled allocation of seven out of eight coal blocks recommended by the IMG for de-allocation.

The government also approved deduction bank guarantee (BG) for Nerad Malegaon block allotted to Gupta Metaliks & Power & Gupta Coalfields, Usha martin’s Lohari, Radhikapur East of Tata Sponge Iron and Bijahan of Bhushan.

The BG has also been deducted for Marki Mangli-II, III and IV blocks allocated to Shri Virangana Steels and for Utkal B2 of Monnet Ispat & Energy.

Mining baron Jayaswal keeps CBI waiting

After keeping the CBI waiting through the day, mining baron Manoj Jayaswal turned up for questioning at the agency’s Delhi headquarters at around 6.45 pm.

Jayaswal and his brother Arvind have been accused of hiding facts related with the financial position of their Nagpur-based firm — AMR Iron and Steel– while applying for allocation of coal blocks.

The duo was questioned for the second consecutive day on Tuesday.

?Jayaswal was to come on Tuesday morning but he didn’t come despite the CBI summons. Then he was to come at five but he again didn’t turn up. He finally reached the CBI headquarters at 6.45 pm,? said a source. Jayaswal, the source said, could be questioned till midnight by agency officials.

Jayaswal, whose three firms — AMR Iron and Steel, JLD Yavatmal Energy and JAS Infra ? have been booked by the CBI, is said to have got coal blocks by using his political connections. ?Jayaswal’s skipping the questioning through the day and then appearing late in the evening is very unexpected. The CBI is quizzing him over his links with politicians and Congress MP Vijay Darda who is also his business partner,? a source said.

According to sources, the CBI will summon Jayaswal on Wednesday and he might be grilled for a few more days. The CBI is also likely to question Darda, who has been named in an FIR, and is associated with two companies out of five allegedly involved in the scam.

In its FIR against AMR, the CBI said the company, which was allocated the Bander coal block in Maharashtra in 2008, fudged its balance sheets and did not disclose to the screening committee that the group had already been allocated five coal blocks which it failed to develop

In three separate FIRs filed by the CBI against the companies owned by Jayaswal, it has also been mentioned that no company had recommendation from the state governments, but still they were allocated coal blocks.

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First published on: 19-09-2012 at 02:42 IST