Some of coal block allottees’ problems are genuine and some aren’t: an IMG member says

Some of coal block allottees’ problems are genuine and some aren’t: an IMG member saysSome of the issues that coal block allottees have pointed out before an Inter-Ministerial Group (IMG) are genuine and some are false, an IMG member present at the meeting said.

Coal block allottees were recently called by the IMG to explain the reason behind the long delays in development of coalmines as the union government is considering annulment of controversial coal blocks allotted to around 58 companies as these companies failed to start coal production in time.

Most companies held the procrastinating tactics of the state governments responsible for the delays in the coalmine development. They also pointed fingers at the forest department for delays in the required clearances.

An IMG member, who was present at the meeting, said, “They are mainly blaming states for delaying clearances inordinately for their projects. Some of the problems they have pointed out are genuine and some are not genuine.”

The list of coal block allottees, which were asked to appear before the IMG, includes Tata Steel, JSW, Reliance Power, Bihar Sponge Iron, Kesoram Industries, Grasim Industries, IST Steel & Power, and SKS Ispat & Power.

The IMG meeting took place in wake of the Comptroller & Auditor General (CAG) alleged in its report that the government awarded coal blocks to private companies at throwaway prices. The national auditor estimated that the allotments cost the taxpayers Rs. 1.86 lakh crore.