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Birla Corp to take legal step against Bikram block de-allocation

January 9: Birla Corporation Limited is in the process of taking legal steps against the de-allocation of Bikram coal block and 50% deduction of bank guarantee, the company said in a filing to BSE.

Clarifying the reasons for delay, the company blamed the government authorities for deferral in various clearances.

"Though significant progress has been made in the development of the coal block, the delays have been entirely due to delays/lapses in receipt of various clearances and approvals from the government authorities, which were beyond the control of the company. Such facts have not been recognised by the Inter Ministerial Group (IMG) constituted by the government to review the progress of development of allocated coal blocks in arriving at the decision to de-allocate…," the company said.

The order regarding deduction of 50% of the bank guarantee, which is linked to the development of the block, would be issued separately after receipt of the calculation of the amount from the Office of the Coal Controller, the company statement added.

Earlier, the MoC had de-allocated the company's Bikram Coal Block on January 7, 2014 on the grounds that the block had not been developed as per the milestones prescribed in the allocation letter.