TNI Bureau: The Government has decided to deallocate Mandakini B coal block in Odisha jointly allocated to four Public Sector Undertakings, PSUs for delays in production.

The PSU’s to which the coal block was alloted are Odisha Mining Corp, Assam Mineral Development Corporation,Meghalaya Mineral Development Corporation and Tamil Nadu Electricity Board.

Mandakini B coal block was alloted in 2007 to the PSUs to meet the coal requirement of their respective proposed power plants.

In a letter addressed to the PSUs on Thursday, the Coal Ministry said, the recommendation of the Inter-Ministerial Group (IMG) has since been considered and accepted by the government to deallocate Mandakini B coal block.

The IMG was formed in June under the Chairmanship of Additional Secretary in the Coal Ministry to review the progress of development of allocated coal blocks and associated end-use projects and to recommended action, including deallocation in case of delays.

The IMG has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and the government has accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.