Ministerial group moots deallocation of 8 PSU coal blocks in Chhattisgarh

The inter-ministerial group (IMG) that is looking into the irregularities in the allocation of captive coal mines to corporates – both public and private – has recommended deallocation eight coal blocks in Chhattisgarh, including a coal block where BJP president Nitin Gadkari's aide Ajay Sancheti was developer and operator.

The IMG has recommended deallocation of eight of the 19 coal blocks allotted to public sector undertakings (PSUs) in Chhattisgarh.

The block where Sancheti was the mine developer belonged to the Chhattisgarh Mineral Development Corporation, a state-sector PSU.

This is a significant development considering Chhattisgarh is a BJP-ruled state. The IMG will meet again after Diwali.

Sancheti has reacted to the deallocation move saying, "I have personally nothing to do with this deal. This was between the state government and a state owned PSU."

IMG had earlier recommended de-allocation of 13 mines operated by private firms and this has already been accepted by the government. In six other cases, the IMG has called for imposition of bank guarantees and deduction of bank guarantees in two cases.