Coalgate: Government to deallocate coal blocks given to three companies

NEW DELHI: The government has decided to scrap mining licences of four coal blocks given to companies that did not develop their blocks and end use plants despite several warnings, sources said.

The three companies to face de-allocation are Castron Mining Ltd (Bramdih block), Field Mining and Ispat Ltd (Chinora and Warora Southern blocks) and Docmo Smokeless Fuels Ltd (Lalgarh North).

Monnet Ispat and Energy Ltd has been asked to start mining its Utkal B2 coal block by March 2013.

The company has been asked to deposit a bank guarantee of about Rs 90 crore that will be encashed if the block is not developed in time.

Bank guarantees of three blocks of Shri Veerangana Steel Ltd have been forfeited as the company did not meet the specified schedule.

The three blocks are -- Markhi II, Markhi III and Markhi- IV. The decision of coal ministry is based on recommendations of an inter-ministerial panel that met on Wednesday.