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2012 Indian Coal Mining Scam - Inter-Ministerial Group


The Inter-Ministerial Group was formed in July 2012 to review the status of coal blocks allocation of 58 companies, public and private. Notices were served to the companies in April. The group is headed by additional secretary (coal) Zohra Chatterjee. The panel would meet on September 6th, 7th and 8th to finalize the list of coal blocks allocations that are to be cancelled and would submit its report to the Coal Minister.

Main Article: 2012 Indian Coal Mining Scam

The government is facing allegations of corruption after the CAG pointed out that there was a loss of approximately Rs. 186,000 crore due to the irregular manner in which coal blocks were allocated during of 2004-2009.

Four Companies to lose coal blocks

The Coal Ministry has decided to de-allocate four blocks who did not develop them within the stipulated time as specified in their contracts. The decision was announced on 13 September 2012. The companies include Castron Mining Limited, Fieldmining and Ispat Limited, and DOMCO Smokeless Fuels Pvt. Limited and Shri Virangana Steels Limited. The recommendations to de-allocate was given by the Inter-Ministerial Group (IMG) which is reviewing the status of the coal block allocations. The recommendations were the first offered by the committee since it was set up in July.

In the case of Shri Virangana Steels Limited, the company would lose its coal blocks as well as a portion of the bank guarantee it provided. Another company, Monnet Ispat and Energy Limited has made substantial progress in developing the mines, but failed to provide a bank guarantee. It is now directed to submit an amount that equal to three years royalty and a month deadline was given, failing which it could lose its coal block.

The Government has deallocated 3 more coal blocks on the recommendations of Inter-Ministerial Group's review held on 14th and 15th September, 2012.

These blocks include:

  • Gourangdih ABC Coal Block allotted to M/s Himachal EMTA Power Ltd. & M/s JSW Steel Ltd.
  • Rawanwara North Coal Block allotted to SKS Ispat and Power Ltd.
  • New Patrapara Coal Block allotted to M/s Bhushan Steel Ltd. and others.

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