Coal Min cancels 4 mines, asks Monnet to deposit Rs 62 cr bank guarantee
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Coal Min cancels 4 mines, asks Monnet to deposit Rs 62 cr bank guarantee

Last Updated: Friday, November 23, 2012, 22:10
 
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Coal Min cancels 4 mines, asks Monnet to deposit Rs 62 cr bank guarantee
New Delhi: The Coal Ministry has decided to deallocate four coal blocks given to 15 firms, including JSW Steel and Bhushan Steel & Strips, and ask Monnet Ispat to deposit a bank guarantee of Rs 62 crore.

"It has been decided to deallocate Gourangdih ABC coal block in the state of West Bengal from Himachal EMTA Power Ltd and JSW Steel Ltd.

In addition it has been decided to forfeit 50 percent of Bank Guarantee related to the development of coal block as per the recommendation of IMG (Inter-Ministerial Group)...The Bank Guarantee to the extent of Rs 6.67 crore be deducted," the Coal Ministry said in a letter dated November 23.

With regard to New Patrapara coal block, the Coal Ministry said in a letter dated November 23, "It has been decided to deallocate New Patrapara coal block in Orissa."

The mine was jointly allocated to eight firms, including Bhushan Steel & Strips and Adhunik Metaliks.

"In addition, it is further decided to return the full bank guarantee amount without any deduction," the letter said.

The Coal Ministry in another letter to Monnet Ispat said that "the Bank Guarantee as calculated by Coal Controller's to the extent of Rs 62.832 crore equal to three years royalty is to be deposited by the allocatee company within the period of one month from the date of letter failing which the block may be deallocated."

In case of Domco Smokeless Fuels, the ministry said in a letter to the company that "it has been decided to deallocate the Lalgarh (North) coal block in the state of Jharkhand allocated to Domco Smokeless Fuel(P) Ltd, Ranchi."

With regard to North Dhadu coal block jointly allocated to four firms, including Adhunik Alloys & Power and Electrosteel Castings said, the ministry said, "It has been decided to deallocate the North Dhadu coal block...In addition, it is further recommended by IMG the Bank Guarantee is complete is also forfeited (Rs 56.03 crore).

A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline.

The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use.

PTI



First Published: Friday, November 23, 2012, 22:10


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