Coal news and updates

IMG moots deduction, encashment of Chaman Metallics BG

March 31: The Inter-Ministerial Group (IMG) has recommended deduction and encashment of bank guarantee (BG) of Chaman Metallics with respect to its Kosar Dongargaon coal block, according to an official release from the Ministry of Coal (MoC).

The IMG said, the company had achieved all the milestones except execution of the mining lease by the state government. However, there have been delays in achieving milestones.

The IMG further said since the company had been given a number of opportunities to develop the coal block and the associated end-use project but failed to develop the same as per the milestones prescribed, without any valid reasons for the delay, it has been decided to deduct and encash the BG amounting to Rs 142,500.