Coalgate: Firms linked to Subodh Kant Sahai, Navin Jindal face action

The government today de-allocated two coal blocks, including one associated with the brother of tourism minister Subodh Kant Sahai on the recommendation of the inter-ministerial group, which also recommended punitive action against a firm owned by Congress MP Naveen Jindal.

The three blocks include  Gourangdih ABC coal block allotted to Himachal EMTA Power Ltd and JSW Steel Ltd; Rawanwara North coal block allotted to SKS Ispat and Power Ltd and the New Patrapara coal block allotted to Bhushan Steel Ltd and others.

The government also approved deduction of bank guarantee in the cases of Nerad Malegaon block allotted to Gupta Metaliks and Power Ltd and Gupta Coalfields Ltd, Lohari block allotted to Usha martin Ltd, Radhikapur East coal block allotted to Tata Sponge Iron Ltd and others and Bijahan coal block allotted to Bhushan Ltd, an official statement said.

A coal block allotted to SKS Ispat and Power Ltd, in which Sudhir Kumar Sahai, is honorary Director was de-allocated by the government on the recommendation of IMG made last Saturday. Sudhir Kumar is the brother of the Tourism Minister, the statement said.

Sahai had reportedly written to Prime Minister Manmohan Singh, who was holding the coal portfolio in 2007, recommending allocation of two coal blocks to SKS Ispat and Power in Chhattisgarh and Jharkhand.

The IMG today recommended deduction of bank guarantee of two blocks, including Jitpur, given to Jindal Steel & Power Ltd (JSPL) of which Naveen Jindal is chairman-cum-managing director (CMD).