SC to hear PIL seeking de-allocation of coal blocks

New Delhi: The Supreme Court on Friday will hear a PIL seeking cancellation of 194 coal blocks allotted between 2005 and 2011. The petition also claims that these blocks were arbitrarily assigned and none of the chosen companies had a mining plan in place.

Meanwhile, Union Rural Development Minister Jairam Ramesh on Thursday said that it was not possible to cancel all the coal block allocations. He, however, asserted that no one, even if a minister or a senior official, would be spared if found involved in the coal scam.

Stating that it was not possible to cancel all coal blocks allotted during the disputed period, Ramesh said at least four to five years time was required to develop and start production in the mine.

Under attack over coal block allotments, the government on Thursday decided to de-allocate four blocks and encash bank guarantees of three others belonging to private companies for failing to meet timelines on production and development of mines.

The government's decision came shortly after an Inter-Ministerial Group (IMG) recommended the de-allocation after evaluating the performance of each of the cases in respect of factors like approval of mining plan, grant of environment clearance, status of forest clearance and land acquisition.

Following the decision by the government, Castron Mining Ltd, Field Mining and Ispat Ltd and Domco Smokeless Fuels Pvt Ltd will be de-allocated.

While Castron Mining Ltd and Domco Smokeless Fuels Pvt Ltd have one block each, Field Mining and Ispat Ltd owns two blocks.

Further acting on the recommendations of the IMG, the Centre has also decided to deduct the bank guarantees of three companies.

The recommendations of the IMG cover as many as eight coal blocks.

Talking about the decision by the government, Coal Minister Sriprakash Jaiswal said, "Expect final report of 58 coal blocks in four to five days. On the basis of the performance of coal blocks, the IMG has given the recommendation...we have accepted the recommendations of the IMG on coal blocks."

(With additional information from PTI)