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CoalMin to discuss deduction of bank guarantees of 14 mines

Last Updated: Friday, October 5, 2012 - 17:45

New Delhi: The Coal Ministry will hold an internal meeting next week to discuss ways to deduct bank guarantees of private companies in case of 14 blocks following the Inter-Ministerial Group recommending action against them.

"Coal Secretary S K Srivasatava has called a meeting with officials of his ministry next week. There would be discussions on the calculations done by the coal controller on bank guarantee deduction for coal mines," an official in the Coal Ministry said.

"The officials will also deliberate on how far and how has the calculations (on bank guarantee deduction of the 14 mines) reached," the official said.

The Inter-Ministerial Group (IMG) recently concluded the scrutiny of 31 coal blocks of 51 private firms.

Last month, the government has accepted the recommendations of the IMG, which had suggested de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.

The IMG had recommended the BG deduction of the coal mines of some of the firms like ArcelorMittal, GVK Power, Jayaswal Neco, Neelachal Iron & Steel and DB Power among others.

After concluding the scrutiny of coal blocks alloted to private firms, the Coal Ministry has asked state-owned firms, which have been issued notices for delays in developing coal blocks, to present their case before the Inter-Ministerial Group on October 9 and 10.

Of the total 31 coal blocks allotted to the public sector firms which were issued notices, around 15 coal block holders will present their case on first day, while 16 will make presentations on the second day, the official added.

The firms which will make presentations include MMTC, Chhattisgarh Mineral Development Corporation and TVNL.

A total of 58 mines were given show cause notices for failure to develop the blocks within stipulated timeline.

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


First Published: Friday, October 5, 2012 - 17:45
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