Government may cancel 53 coal block allotments: report

Government may cancel 53 coal block allotments: reportThe government is planning to cancel 53 coal blocks allotments that failed to meet timelines for starting production, a coal ministry official said.

Citing an unnamed top coal ministry official, the TOI reported that the ministry had served notice for de-allocation on the ground of willful delays in the start of production.

The paper quoted the official, "Blocks allotted to companies that are found wanting in their efforts to meet the timelines would be de-allocated."

At least seventeen companies, which had been allotted coal blocks, were found guilty of willfully delaying production. These companies have so far not made any move to acquire land or to get required clearances.

According to the report, Tata, Jindal Group and Arcelor Mittal are among numerous corporate giants which are facing the axe.

However the official also said that the ministry could spare those companies which delayed production due to genuine reasons, like delayed environment clearances. The final decision will be taken by the ministerial panel, which is expected to meet next week.

The report surfaced as the Opposition led by BJP is demanding resignation of the prime minister over the alleged coalgate scandal.

In its report, the Comptroller & Auditor General of India said the government allotted blocks with nearly forty-four billion tonnes of coal to private companies at throwaway prices. It estimated that the scandal cost the taxpayers 1.86 lakh crore.