CoalMin asks MTCL to submit BG of Rs 211 crore
New Delhi: The government has asked Tamil Nadu Electricity Board and Maharashtra State Mining Corp to submit a bank guarantee of Rs 211 crore for not commencing production from the mine alloted to them, failing which action, including deallocation of coal, would be taken.
"The JV (joint venture) company of the joint allocattees, Maha Tamil Collieries Ltd (MTCL) is directed to submit the bank guarantee of Rs 211.456 crore....Failing which appropriate action would be taken, including deallocation of coal block," the coal ministry said in a letter to Tamil Nadu Electricity Board (TNEB) and Maharashtra State Mining Corp (MSMC).
Gare Palma coal block in Chhattisgarh was allocated in 2006 to the firms. The mine has a geological reserves of 768 million tonnes.
The decision was taken following the recommendations of an inter-ministerial group (IMG) under the Chairmanship of Additional Secretary, Ministry of Coal.
The IMG has members from the ministries including power, steel, commerce, DIPP and law. It has been given the mandate to review the progress of development of allocated coal blocks and associated end-use projects and recommend action, including deallocation, if required.