Three companies holding coal blocks may be penalised

NEW DELHI: An official panel reviewing coal blocks has recommended penalising Jindal Steel & Power and Corporate Ispat Alloys Ltd, a unit of Abhijeet Group that is under CBI's net, for slow development of their blocks in Jharkhand.

The panel also recommended scrapping mining licence of Bihar Sponge Iron Ltd for Macherkunda coal block in Jharkhand, sources said after the inter-ministerial group's (IMG) meeting on Tuesday.

"The IMG will recommend cancellation of Macherkunda coal block and deduction of bank guarantee of Jindal Steel & Power Ltd for Jitpur coal block and Corporate Ispat for Chitarpur block," a government official said.

The IMG will meet again on Wednesday to suggest action against about five coal blocks, he said.