The inter-ministerial panel on coal blocks is likely to review the status of a mine awarded to Mahanadi Coalfields Ltd, Neyveli Lignite Corp (NLC) and Hindalco Industries.

“The panel headed by the advisor in the Coal Ministry is scheduled to meet this week. There are more than 40 coal blocks, including the Talabira II awarded to Hindalco and others, that are under scrutiny,” said a senior ministry official, requesting anonymity.

The review panel does not scrutinise the allocation procedure. Rather, it watches whether the block owners are exploring the mine according to the set milestones. If a company is found delaying developing a block, it will first be issued a show-cause notice seeking explanation.

If the committee finds the explanation invalid, it will recommend to the Coal Minister to deduct the bank guarantee of the company or de-allocate the block. The Talabira II block, allocated in 2005, is situated in Jasukuda district of Odisha. NLC has a 70 per cent stake in the mine, while Mahanadi and Hindalco have 15 per cent each.

On October 15, the Central Bureau of Investigation filed a case against Aditya Birla Group Chairman Kumar Mangalam Birla and former Coal Secretary P.C. Parakh for allegedly conspiring to award the block to Hindalco.

Hindalco has maintained that it is still awaiting the stage-II forest clearance. Without this go-ahead, it cannot start mining.

Earlier, the Government had de-allocated blocks of companies such as Castron Mining, Field Mining & Ispat, Domco Smokeless Fuels, JSW Steel and Himachal EMTA.

>siddhartha.s@thehindu.co.in

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