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Coal Ministry seeks Rs 139 cr guarantee from NTPC for mine delays

The Coal Ministry has asked NTPCBSE 1.19 % to submit a bank guarantee (BG) of Rs 138.6 crore for delaying the production from one of its coal mines in Jharkhand.

"It is decided to direct that the Bank Guarantee be furnished by the allocatee company (NTPC). The Bank Guarantee as calculated by the Coal Controller's office to the extent of Rs 138.6 crore...is to be deposited," the Coal Ministry said in a letter, dated February 13, to NTPC Chairman and Managing Director.


The decision was taken following the recommendations of the Inter-Ministerial Group (IMG) on coal blocks.

The letter said: "After detailed deliberations, the IMG made its recommendation for imposition of Bank Guarantee for development and production from Pakri Barwadih coal block (in Jharkhand) which was allocated to NTPC."


As against the scheduled date of production of April 11, 2008, mine could not be opened so far despite environment and forest clearances have been granted, it added.

"IMG recommends imposition of Bank Guarantee on the allocatee in order to expedite the development and production from the block," the letter said.


The Coal Ministry had allocated Pakri Barwadih to NTPC in October, 2004.

The IMG, under the Chairmanship of Additional Secretary Coal was set up to review the progress of coal blocks allocated to firms for captive use.

Source: PTI