Coal news and updates

IMG deducts BG for Gondulpara block from Tenughat, DVC

March 21: The Inter-Ministerial Group (IMG) has taken a decision to deduct and encash the bank guarantee in respect of the Gondulpara coal block in the state of Jharkhand awarded to Tenughat Vidyut Nigam Limited and Damodar Valley Corporation (DVC), according to a release by the Ministry of Coal (MoC).

The block had been awarded to these two power utilities in June 2006.

The IMG noted that, as per the CCO's status report, the geological reserves had been purchased and the mining plan approved. However, the environmental clearance, forest clearance and mining lease as well as land acquisition are pending.

The IMG further noted that the delay in issue of gazette notification for approval of the joint venture company as mine operator cannot be a ground to justify the delay in mine development since the formation of the JV was optional and not a condition for the allocation of the block.

Consequently, the allocatees will have to pay up the BG of Rs 15.18 crore. The investment made so far in the block amounts to Rs 52.23 crore.

The IMG has also deducted the BG of Andhra Pradesh Mineral Development Corporation in respect of Suliyari coal block allocated to it due to various pending milestones. The BG amount is Rs 2.24 crore.