Last week, Sriprakash Jaiswal said files were yet to reach him The Coal Ministry has not acted upon the recommendations of the Inter-Ministerial Group (IMG) for de-allocating six additional coal blocks and deduct bank guarantee in the case of seven companies. Although the IMG had submitted its final recommendations relating to the treatment of 29 coal blocks allotted to private parties, who were issued show cause notices, the Coal Ministry, under Coal Minister Sriprakash Jaiswal, has failed to initiate further action in pending cases — including on companies such as Jindal Steel and Power Limited (JSPL), Bihar Sponge, Rungta Mines and Sunflag Iron & Steel (RMSI), Gujarat Cements and Grasim Industries, to name a few. Last week, Mr. Jaiswal had stated that the Ministry was studying the IMG’s recommendations and the files were yet to reach him. However, the delay in taking action against those indicted in the IMG review may lead to suspicion that the Ministry could be thinking of watering down the IMG’s recommendations in a bid to oblige certain companies which have strong political links with the ruling UPA dispensation. So far, the Ministry has de-allocated seven coal blocks and announced deduction of bank guarantee in the case of seven. The Zohra-Chatterjee-headed IMG had recommended deduction of bank guarantees in the case of Virangana Steel, Usha Martin, Tata Sponge Iron and Bhushan Power, JSPL’s Jitpur block, GVK Power, and Jayaswal Neco. It had had recommended de-allocation in the case of Electrosteel Castings & others for the North Dhadu block; RMSI for the Choritand Taliya block; Electrotherm India and Grasim Industries for the Bhaskarpara block; IST Steel & Power, Gujarat Ambuja Cements and Lafarge for the Dahegaon Makardhokra block; Maharastra Seamless and Dharial Infrastructure & Kesoram Industries, Gondkhari block; JSW Steel and Himachal EMTA Power, Gourangdih ABC block; SKS Ispat and Power for the Rawanwara North block; Bhushan Steel Ltd. and others, new Patrapara block; Castron Mining, Brahmdiha block; Field mining and Ispat Limited, Chinora and Warora (South) blocks; DOMCO Smokeless Fuels, Lalgarh (North) block; Bihar Sponge Iron Company, Macherkunda block. The IMG had recommended deduction of bank guarantee in the case of Jayaswal Neco for the Moitra block; Arcelor Mittal India Ltd. & GVK Power, Seregarha block; Neelachal Iron & Steel & Bajrang Ispat, Dumri block; DB Power Ltd., Durgapur II/Sariya block; Gupta Metaliks & Power and Gupta Coalfields, Nerad Malegaon block; Usha Martin for the Lohari block; Tata Sponge Iron Ltd. & others, Radhikapur (East) block; Bhushan Steel and Power Ltd, Bijahan block; Virangana Steel, Marki Mangli-II block; Virangana Steel, Marki Mangli-III block; Virangana Steel, Marki Mangli-IV block; Monnet Ispat & Energy, Utkal B2 block; and JSPL, Jitpur block. The IMG is scheduled to meet again on October 9 and 10 to carry out a review of the show-cause notices issued to 29 public sector undertaking companies that failed to meet the deadlines for carrying out developmental activity at the coal blocks allotted to them. So far, Coal Ministry has de-allocated 7 blocks, announced deduction of bank guarantee for 7 companies Delay may lead to suspicion Ministry is seeking to oblige companies with links with UPA government