The Inter-Ministerial Group (IMG) on coal blocks is likely to take a decision on recommendations with regard to the 31 mines allocated to public sector firms by 20 October 2012.

IMG has recently concluded the scrutiny of 31 coal blocks allotted to 51 private firms. PSU companies will present their case before the IMG on 9 and 10 October 2012. Of the total 31 coal blocks allotted to the public sector firms which were issued notices, around 15 coal block holders will present their case on first day, while 16 will make presentations on the second day. The firms which will make presentations include MMTC, Chhattisgarh Mineral Development Corporation and TVNL.

Bhaskarpara coal block allotted to Grasim Industries and Electrotherm; Dahegaon Markardhokra IV given to IST Steel & Power; North Dhadu allotted to Electrosteel Castings; Chorit and Telaiya allotted to Rungta Mines and Gondkhari block allotted to Maharashtra Seamless are among the 13 blocks whose de-allocation has been approved.
The government also approved the deduction of the BG with regard to the coal mines of some of the firms including ArcelorMittal, GVK Power, Jayaswal Neco, Neelachal Iron & Steel and DB Power among others. A total of 58 mines were issued show cause notices for their failure to develop blocks within stipulated timeline.

Meanwhile, the Ministry of Coal is likely to hold an internal meeting to discuss ways to deduct bank guarantees (BGs) of private companies in case of the 14 blocks following the IMG recommending action against them.