Taking first decisive step towards pacifying uproar over alleged irregularities in the allotment of coal blocks, the government on Thursday axed four of the eight blocks that the inter-ministerial group (IMG) had taken up for evaluation on Wednesday.

In the first round, the government cancelled the coal blocks only of lesser-known companies, viz. Maharashtra-based Field Mining & Ispat, Jharkhand-based Domco Smokeless Fuels, and West Bengal-based Castron Mining.

The government also deducted parts of the bank guarantees offered for three other blocks that hadn't been developed within the prescribed timeframe. Besides, one of the allottees was asked to furnish fresh guarantee.

But, it is worth-mentioning here that three of the four axed blocks had been allocated by the NDA government.

Last week, IMG called coal block allottees to explain the reason behind the long delays in development of the coal mines that were allotted to them with a condition to start production with a prescribed timeframe. The uproar erupted after national auditor Comptroller & Auditor General (CAG) said in its report that arbitrary allocation of 57 coal blocks to private companies cost the exchequer of nearly Rs. 1.86 lakh crore.

The IMG, headed by additional secretary Zohra Chatterji of coal ministry, has representatives from various ministries, including coal, law, power, finance, and commerce & industry.

The IMG in now evaluating the allotment of coal blocks to well-known corporate houses, such as the Tatas, the Essar group and the Jindals. Recommendations are expected to surface by late Friday.