The coal ministry on Tuesday approved the deallocation of captive blocks held by SKS Ispat and Bhushan Steel, based on the recommendations of an inter-ministerial group (IMG) reviewing progress on the blocks. At a meeting on Tuesday, the panel also recommended deallocating a block being developed by Bihar Sponge. SKS Ispat’s Rawanwara North block and Bhushan Steel’s New Patrapara block, deallocated on Tuesday by Coal Minister Sriprakash Jaiswal, together hold reserves of 1,216 mt. SKS Ispat was recently in news after its name figured in the alleged allocation scam. Tourism Minister Subodh Kant Sahay’s brother Sudhir Kant Sahay is an executive director in the company. On Friday, the IMG had recommended deallocation of the two blocks. With on Tuesday’s decision, so far, the government has deallocated coal blocks held by companies that include JSW Steel, Bhushan Steel, Himachal Emta Power, Castron Mining, Fieldmining & Ispat and DOMCO Stainless Fuels, owing to delays in production at the blocks. Meanwhile, the IMG, headed by Zohra Chatterji, additional secretary in the coal ministry, also recommended deallocating Bihar Sponge’s Macherkunda coal block. It also recommended deducting bank guarantees given by Jindal Steel and Power for its Jitpur block in Odisha and Corporate Ispat Alloys for its Chitarpur block.