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Ministry cancels 16 captive coal blocks to big firms

The Coal Ministry, acting on the advice of the Inter-Ministerial Group (IMG), has issued letters of cancellation for 16 blocks. While ten blocks stand immediately de-allocated, orders pertaining to six other coal blocks have been put on hold due to court proceeding, a senior Coal Ministry official said here on Tuesday.

The IMG is understood to have recommended cancellation of 26 coal blocks after it issued show-cause notices to firms asking why their allocations should not be cancelled in view of failure to develop these blocks.
Blocks allocated to CTL (coal to liquid) projects of JSPL and Strategic Energy Technology Systems Private Ltd (SETSPL), a joint venture between a consortium of Tata companies and Sasol of South Africa have also been cancelled. Other cancellations include AES Chhattisgarh, Bankura DRI Mining Manufacturers, Mideast Integrated Steel and Rungta Mines. A block awarded to a consortium of Ramswarup Lohh Udyog, Adhunik Corp, Uttam Galva Steels, Howrah Gases, Vikash Metals and Power and ACC has also been cancelled as has another block allocated to Rungta Mines; OCL India and Ocean Ispat (Radhikapur West). Adani Power’s Lohara West and Lohara Extension blocks have also been cancelled.

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