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Coal Min seeks Rs 242cr bank guarantee from Tenughat Vidyut

MG recommends that the allocatee may be permitted to continue holding the block only on submission of Bank Guarantees.

The Coal Ministry has asked Tenughat Vidyut Nigam Ltd (TVNL), the Jharkhand Government to furnish a bank guarantee of Rs 241.92 crore for delaying production from one its coal mines in Jharkhand, failing which the mine may be deallocated.

“TVNL is directed to furnish a bank guarantee (BG) for a amount of Rs 241.92 crore to the Coal Controller's organisation within a period of three months from the date of issue of this letter, failing which the block (Rajbar E&D mine in Jharkhand) may be deallocated," the Coal Ministry said in a letter dated February 4 to the Managing Director of TVNL.

The decision was taken following a recommendation of the Inter-Ministerial Group (IMG) on coal blocks. IMG recommends that the allocatee may be permitted to continue holding the block only on submission of BG. IMG further recommends that the BG may be submitted within a period of three months from the date of issue of letter in this regard failing which the block may be deallocated, the letter said.

The IMG is a regionally explored block and yet more than six years have elapsed from the date of allotment. The prospecting license was granted on May 14, 2010. There was no progress in the development of coal block and all milestones were pending. The company had applied for the block for the proposed expansion of its power plant in the state of Jharkhand in which an investment of Rs 10.35 crore was reported. Out of this, Rs 9.28 crore had been spent on exploration and preparation of Geological Reserves. The normative date for start of production was May, 2012, it added.

The government had formed the IMG in 2012 to review progress of coal blocks allocated to firms for captive use.

Source: PTI