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Amid pressure from the Supreme Court, the Centre is all set to de-allocate 28 coal blocks where even first stage forest clearance has not been received, and principal among them are reserves allotted to corporate big-wigs like Essar Power, Adani Power, Arcelor Mittal India, GVK Power (Govindwal Sahib) Ltd, Tata Steel, JK Cement, and Balco along with others.Coal Minister Sriprakash Jaiswal is likely to issue formal orders for de-allocation of these blocks this week.

The Inter-Ministerial Group (IMG) of the Coal Ministry which had met last week to review performance of 61 blocks which were allotted after 2005, according to source privy to the development, recommended de-allocation of 28 blocks where Stage-I forest clearance has not been granted. The Coal Ministry, they added, has accepted the recommendations of the panel and is all set to cancel these blocks.

Ganeshpur block held jointly by Tata Steel and Adhunik Thermal Energy; Bander block held by J K Cement Ltd, AMR Iron & Steel Pvt Ltd and Century Textiles & Industries Ltd; Lohara West and Lohara Extn (E) held by Adani Power Ltd; Seregraha block owned by Arcelor Mittal India Ltd as well as GVK Power (Govindwal Sahib) Ltd; Chakla block held by Essar Power Ltd; Durgapur II/Tarimar block belonging to Balco, are some of the blocks among the total 28 reserves, which are likely to face the axe.

The list of the original 61 blocks was prepared after the intervention of the PMO, and these were those blocks where no or very little development had taken place. While the aforementioned 28 blocks are those which are facing cancellation, the remaining are said to have been given temporary relief as many of them have received Stage-I forest clearance and are awaiting Stage-II clearance.

The Government fast-tracked the process of scrutinising coal blocks where hardly any mining process has been initiated after being pulled up by the Supreme Court last month. The Apex Court on January 9, 2014 had sought to know from the Attorney General G E Vahanavati whether the Government intends to cancel blocks belonging to private companies which neither had forest nor environment clearances.

To this, he had said that the Government was reviewing the matter and needed time to inform the court. During the same hearing the Centre had conceded before the Court that “something has gone wrong” in allocation and review of the blocks. Subsequently the Government finalised the list of 61 such blocks and of these 28 now face the threat of imminent cancellation.

The IMG last week reviewed 61 coal blocks allocated to 41 companies which are facing cancellation of licenses due to delays in commencing production. The Coal Ministry had told the companies in a 16.01.2014 letter that blocks where environment clearance and stage-I of forest clearance have not been obtained will be cancelled.

Source-On Request