New Delhi: An Inter-Ministerial Group (IMG) under the Coal Ministry is all set to cancel coal blocks allotted to private players since 1993 despite the Prime Minister’s Office saying no blocks will be cancelled. In all, 148 coal blocks are under scrutiny.
The panel will first look at 60 blocks which had been issued showcause notices in April. Of these 60, replies related to 17 blocks have been found to be unsatisfactory.
Of the total 148 blocks, 53 found mention in the CAG list. Seven blocks were allotted during the NDA regime. The ministry has issued a caution advisory to 32 blocks for not showing any progress.
The panel is likely to meet over the next two days to fast forward the cancellation process. This comes after a PMO direction to the coal ministry to take action.
The firms whose blocks could be cancelled include GMR, Lanco, Sterlite, Arcellor and Tata.
Coal Minister Sriprakash Jaiswal said an IMG has been set up to examine the pros and cons and based on its report any number of allocations can be cancelled.
The IMG meeting is taking place in the backdrop of stepped up pressure on the government to cancel 142 allocations which are under the scanner after the CAG report.
Leader of the Opposition Sushma Swaraj said in Mumbai that there was no going back on the BJP demand for resignation of Prime Minister Manmohan Singh, who, she said, was directly responsible for the controversial allocations.