Govt to deallocate coal mines of 3 firms

Nov 20 2012, 01:31 IST
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SummaryActing on the recommendations of the Inter-Ministerial Group on coal blocks, the government has decided to deduct or forfeit bank guarantees to the tune of Rs 25.7 crore

Acting on the recommendations of the Inter-Ministerial Group on coal blocks, the government has decided to deduct or forfeit bank guarantees to the tune of Rs 25.7 crore as the case may be, involving 11 firms for sitting on coal blocks allocated to them for captive use.

The coal ministry has asked for forfeiture of bank guarantee of Rs 11.8 crore with regard to Gondhkari coal block jointly allotted to Maharashtra Seamless, Dhariwal Infrastructure and Kesoram Industries Ltd.

“Accordingly, Gondkhari coal block...is deallocated and bank guarantee amounting to Rs 11.87 crore furnished by the allocatee companies is forfeited and be encashed,” the coal ministry said in a letter dated November 15 to Maharashtra Seamless, Dhariwal Infrastructure and Kesoram Industries.

The companies whose guarantee has been ordered for deduction includes, Grasim Industries, Gujarat Ambuja Cements, Lafarge India, among others.

The IMG has concluded the scrutiny of coal blocks allotted to private firms and last month the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.

The IMG has also recommended de-allocation of eight such blocks allotted to public sector firms after scrutiny of 19 cases.

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

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