After recommending cancellations of coal block allocations made to private players, the inter-ministerial group (IMG) on Wednesday recommended action against erring PSUs.
The IMG on coal blocks recommended de-allocation of eight such blocks after scrutiny of 19 cases. According to sources, IMG has recommended de-allocation of eight mines, imposition of bank guarantee in six cases and deduction of bank guarantee in two cases.
The panel had asked for de-allocation of 13 mines to private firms which has already been accepted by the Centre.
The blocks recommended for de-allocation on Wednesday include Mandakini, Utkal- D and Touli-Paharpur.
A total of 58 mines were issued showcause notices for their failure to develop blocks within stipulated timeline.
The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use.
The IMG on October 9 and 10 had examined 33 coal blocks allocated to public sector firms, including Andhra Pradesh Power Generation Corporation, NALCO and MMTC. The panel has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms. The CAG had estimated that undue benefits to the tune of R1.86 lakh crore might accrue to private firms on account of allocation of 57 mines to them without auction.