Union Coal Ministry decided to deallocate Four Coal Blocks allotted to 15 Firms

The Union Coal Ministry  in the fourth week of November 2012 decided to deallocate four coal blocks allotted to 15 firms, including JSW Steel and Bhushan Steel and Strips.  The four coal blocks are as following:- Gourangdih ABC coal block in West Bengal, New Patrapara coal block in Orissa, the Lalgarh coal block in Jharkhand and north Dhadu coal bloack. The ministry also asked the Monnet Ispat to deposit a bank guarantee of 62 crore rupees.  

The Gourangdih ABC coal block in West Bengal was allotted to Himachal EMTA Power Ltd and JSW Steel Ltd. The Coal Ministry in its letter to the company stated that it has decided to forfeit 50 per cent of the Bank Guarantee related to the development of coal block as per the recommendation of Inter-Ministerial Group.

The Ministry also decided to deallocate New Patrapara coal block in Orissa and to return the full bank guarantee amount without any deduction.The Coal Ministry in another letter to Monnet Ispat said that the Bank Guarantee as calculated by Coal Controller is to be deposited by the allottee company within one month from the date of letter failing which the block may be deallocated.

In case of Domco Smokeless Fuels, the Ministry decided to deallocate the Lalgarh (North) coal block in Jharkhand. With regard to North Dhadu coal block jointly allocated to four firms, the Ministry has decided to deallocate the North Dhadu coal block in addition to the forfeiture of full bank guarantee.