The Inter-Ministerial Group (IMG) on Wednesday recommended cancellation of coal blocks allotted to three private companies, and deduction of bank guarantees of four mines.

The three blocks that the IMG recommended for cancellation are Choritand Tailaya block allotted to Rungta Mines and Sunflag Iron & Steel; North Dhadu block allotted to Jharkhand Ispat Pvt Ltd and partners, and the Gondkhari block allotted to Maharashtra Seamless, Dhariwal Infra Ltd and Kesoram Industries.

Bank guarantees for Seregarha by Arcelor Mittal India and GVK Power Ltd; for Moitra block by Jayaswal Neco; for Sarya by DB Power and for Dumri block by Neelachal Iron & Steel were also recommended to be deducted.

These recommendations still need Union Coal Minister Sriprakash Jaiswal's endorsement.

Mr. Jaiswal has so far approved de-allocations of five coal blocks on the recommendations of the IMG, which is reviewing licences allotted to private firms that have failed to start mining operations within the prescribed timeframe.

The IMG dragged allotted coal blocks under scrutiny after the BJP-led Opposition demanded de-allocation of all the blocks, in wake of CAG report that estimated that the arbitrary allocation of blocks robbed the exchequer of around 1.86 lakh crore.