Coal news and updates

The government ordered deduction of Rs 2.24 crore from bank guarantee given by Andhra Pradesh Mineral Development Corporation for delay in developing a coal mine in Madhya Pradesh. 

 

The development comes a day after the government asked power major NTPCBSE -0.39 % to furnish a bank guarantee of Rs 233 crore for failing to develop a mine in Chhattisgarh. 

 

Ordering deduction of Rs 2.24 crore from Rs 5.81 crore bank gurantee submitted by Andhra Pradesh Mineral Development Corporation for Suliyari block in Madhya Pradesh, the Coal Ministry has said the block is liable for cancellation if the company failed to expedite development. 

 

The mine with a geological reserves of 141 million tonnes (MT) of coal was alloted to the Corporation in 2007. 

 

"An amount of Rs 2.24 crore is being deducted from bank guarantee submitted to the office of Coal Controller and deposited in relevant head of account of the government," the Coal Ministry said in a note to the Managing Director of Andhra Pradesh Mineral Development Corporation. 

 

The decision was taken based on recommendations of an Inter Ministerial Group (IMG) that reviewed the progress made on coal blocks allotted to private and public sector companies for their own use. 

 

The IMG, after assessing work on the block in October, 2013, recommended "deduction of proportionate amount of bank guarantee linked to milestone set for development of Suliyari coal block." 

 

The panel noted that mining plan approval, environment and forest clearance, previous approval of central government, grant of mining lease, mine opening permission and coal production are pending. 

 

The Corporation had submitted that there was initial delay of two years in obtaining prospecting licence from the Madhya Pradesh government. 

 

It said that it would start mining operation by November. The IMG had earlier issued a show-cause notice to Andhra Pradesh Mineral Development Corporation saying the block could be cancelled for unsatisfactory progress. 

 

The Coal Ministry in its letter earlier had said that violation of any of the conditions of allocation on the part of Corporation would render the mining lease liable for cancellation. 

 

Source: PTI