18 SEP, 2012, ET BUREAU
NEW DELHI: An official panel has recommended that the government should penalise Tata PowerBSE -0.15 % and Hindalco IndustriesBSE -1.66 % for delay in developing a coal block in Jharkhand, government sources said.
"The inter-ministerial group (IMG) reviewing coal block progress took a decision on Monday to suggest deduction of bank guarantees of the two companies for slow progress at Tubed coal block with 189 million tonnes reserves," a government official said.
The block was allocated to Hindalco Industries and Tata Power in 2007 for their power plants.
The inter-ministerial panel will meet again on Tuesday to suggest action against about five coal blocks, the sources said. On Monday, the government also accepted the panel's recommendation made on Friday and cancelled the mining licence of Gourangdih ABC block in West Bengal jointly owned by JSW SteelBSE -0.46 % and Himachal EMTA. The government has so far de-allocated five blocks held by five companies including Field Mining and Ispat and Castron Mining based on the IMG's recommendations.
It has also decided to deduct bank guarantees submitted by companies for three blocks. The government is yet to approve IMG's recommendations made on Saturday to scrap licences of two coal blocks held by nine companies including SKS Ispat & Power and Bhushan Steel. The blocks with a total 1,200 mt reserves were not developed in time. The panel has so far reviewed 19 of total 29 coal blocks held by private companies that submitted their status reports earlier this month. The panel has recommended action against 15 of the 19 blocks reviewed so far. The IMG, with members from finance, law, coal and power, has been asked to fast-track its recommendations and is finalising minutes in the same meeting. "The minutes are being drafted then and there in the meeting and being approved by the members immediately. This is unlike working of previous screening committees that reviewed coal blocks development and used to take about a month to finalise recommendations," the sources said.
NEW DELHI: An official panel has recommended that the government should penalise Tata PowerBSE -0.15 % and Hindalco IndustriesBSE -1.66 % for delay in developing a coal block in Jharkhand, government sources said.
"The inter-ministerial group (IMG) reviewing coal block progress took a decision on Monday to suggest deduction of bank guarantees of the two companies for slow progress at Tubed coal block with 189 million tonnes reserves," a government official said.
The block was allocated to Hindalco Industries and Tata Power in 2007 for their power plants.
The inter-ministerial panel will meet again on Tuesday to suggest action against about five coal blocks, the sources said. On Monday, the government also accepted the panel's recommendation made on Friday and cancelled the mining licence of Gourangdih ABC block in West Bengal jointly owned by JSW SteelBSE -0.46 % and Himachal EMTA. The government has so far de-allocated five blocks held by five companies including Field Mining and Ispat and Castron Mining based on the IMG's recommendations.
It has also decided to deduct bank guarantees submitted by companies for three blocks. The government is yet to approve IMG's recommendations made on Saturday to scrap licences of two coal blocks held by nine companies including SKS Ispat & Power and Bhushan Steel. The blocks with a total 1,200 mt reserves were not developed in time. The panel has so far reviewed 19 of total 29 coal blocks held by private companies that submitted their status reports earlier this month. The panel has recommended action against 15 of the 19 blocks reviewed so far. The IMG, with members from finance, law, coal and power, has been asked to fast-track its recommendations and is finalising minutes in the same meeting. "The minutes are being drafted then and there in the meeting and being approved by the members immediately. This is unlike working of previous screening committees that reviewed coal blocks development and used to take about a month to finalise recommendations," the sources said.
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